The lockout of Teamsters rail union workers by Canadian freight rail operators Canadian National Railway and Canadian Pacific Kansas City hits U.S. trade.
The lockout of over 9,000 rail union workers by Canadian National Railway and Canadian Pacific Kansas City has left billions of dollars worth of U.S.-bound trade in limbo during peak shipping season.
Jim Vena, CEO of Union Pacific, wrote in a letter to Canadian Labor Minister Steve MacKinnon that upwards of 2,500 of his railroad's cars could be stuck in Canada."For every one day of disruption, you can expect at least 3-5 days of recovery — perhaps even more, given two Canadian railways are impacted.
Chemicals caught up in the rail battle include sulfuric acid, which is used in drain cleaning products, phosphates used in laundry detergent, and acetone, which is used in the nail industry and as a solvent that breaks down grease and wax. Sodium fluoride, found in toothpaste, and sodium bicarbonate, also known as baking soda, come through the West Coast ports of Canada and are then transported via rail. Additional products transported into the U.S.
"I want to specify the decision to stop the operation, the decision to take hostage the economy, and the exporters and the farmers and everybody, It's not our decision," Francois Laporte, president of the Teamsters Canada, told CNBC."It's the decision of the railway company. They are the one who must bear the consequences of their decision."
Laporte told CNBC that arbitration is not the solution."The reality is that companies must take responsibility, like we do, and negotiate in good faith. We don't believe that a third-party must determine the working conditions of 9,000 people, so let's go back to the bargaining table. ... They are probably graduates from the Trump University because they lie like they breathe."
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