Freeland calls nationwide rail shutdown an act of 'sabotage'

Finance Minister Chrystia Freeland told reporters Wednesday, just hours ahead of a shutdown of its two largest railways, Canadian Pacific and Canadian National, that any strike was intolerable.

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  • August 22, 2024
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Freeland calls nationwide rail shutdown an act of 'sabotage'
The Canadian Press / Adrian Wyld
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Canada’s top politicians are condemning Thursday’s disruption of national rail service as an act of "sabotage." Some 10,000 rail workers hit the picket lines after multiple failed talks.

Finance Minister Chrystia Freeland told reporters Wednesday, just hours ahead of a shutdown of Canada’s two largest railways, that any strike was intolerable. 

"It is totally unacceptable for us as a country to sabotage ourselves right now," she said. Canadian Pacific (CPKC) and Canadian National (CN), locked workers out at 12:01 am this morning after negotiations fell through.

"What kind of contingency plans does the government have?" asked a reporter. "Our plan is for the parties to listen to Canadians," replied Freeland.

"What will it take before the federal government considers legislating an end to this stoppage?" asked a reporter. "We take this situation incredibly seriously," replied Freeland. "We know the best deals are reached at the bargaining table and I am calling with extreme seriousness on the employers and the union to roll up their sleeves to get a deal done."

Prime Minister Justin Trudeau also made an urgent call for a quick solution Thursday, as the impacts of the work stoppage would be felt across the country.

Canada's rail stoppage could cost over $341 million per day, ratings agency Moody's said Wednesday. Shutting down 75% of Canada's freight rail traffic would cost the economy more than 4% of the GDP, it added. The stoppage could cause billions more for North American supply chains.

"We will have more to say shortly on what we're doing to make sure the right solution is found, quickly, for the economy," Trudeau told reporters. He did not elaborate.

Alberta Premier Danielle Smith called for Parliament to "immediately pass" back-to-work legislation or subvert continued disruptions through binding arbitration. "This stoppage will have devastating impacts on Canada’s economy, Canadian families and communities across this country," she said in a press release Thursday.

Business groups and companies made similar calls in a bid to avoid further delays. However, unions typically avoid arbitration to secure better terms.

The last time a minority Parliament passed back-to-work legislation to end a rail dispute was in 1973, reported Blacklock’s Reporter. Majority Parliaments have quickly passed back-to-work bills five times since 1950.

Meanwhile, the federal New Democrats have called on Trudeau to not intervene in the disputes.

"Throughout this process, CN and CPKC have shown themselves willing to compromise rail safety and tear families apart to earn an extra buck," said Paul Boucher, president of Teamsters Canada Rail Conference.

Grain Growers of Canada (GGC) estimates that the initial impact of this dual stoppage will cost grain farmers over $43 million a day in the first week alone, with losses expected to escalate to $50 million a day the week after and beyond if the stoppages continue.

"With work stoppages at both CN and CPKC, our entire supply chain is at risk," said Kyle Larkin, Executive Director of the Grain Growers of Canada. "This disruption is happening at the worst possible moment, during the start of harvest season, when our farmers are most dependent on our rail network."

Canada is home to over 65,000 grain farmers whose crops account for $35 billion in exports. With grain elevators situated on railways, growers rely on the network to market and sell their grain. There is no viable alternative at this time, the organization said.

Despite the picketing, contractual talks remain ongoing. The two railroads claimed they made multiple offers to workers, guaranteeing better pay and working conditions.

"It is clear that a negotiated outcome with the TCRC is not within reach," CPKC said. CN locked workers out as the union did not make progress on its most recent offer ahead of the deadline.

"My message is very straightforward," Trudeau said. "It is in the best interests of both sides to … find a negotiated resolution. Millions of Canadian workers, farmers and businesses right across the country are counting on both sides to do the work and get to a resolution."

Francois Laporte, president of Teamsters Canada, told reporters he does not expect Ottawa to compel arbitration onto workers.

"We believe that this thing has to be settled at [the] bargaining table," he said. "We don't believe in letting a third party decide what's going to be the working conditions of these people."

CPKC and CN reportedly gave advance notice to redirect cargoes in order to provide temporary reprieve from shuttered operations. The stoppage is set to cripple shipments of grain, potash and coal while also slowing the transport of petroleum products, chemicals and autos.

"This means disruptions, delays and increased costs on goods for Canadians," Premier Smith said. "A prolonged work stoppage will also back up and severely bottleneck other transportation modes, such as ports, warehouses and long-haul trucking operations," she added.

"While we respect the collective bargaining process, the collateral damage to Canadians, our businesses and our country’s international reputation is too high to allow the simultaneous disruption of both of these railways to continue."

Editor's Note: The copy has been updated to include comment from the Grain Growers of Canada.

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