A labour dispute at both Canadian National and CPKC threatens to derail not only Peretz’s business, but the scores of manufacturers he supplies in a complex, just-in-time supply chain. The Canadian Federation of Independent Business has said the lockout could be devastating for small businesses that depend on rail service.
Railways carry more than $1 billion worth of goods each day, according to the Railway Association of Canada, and over half of the country’s exports travel by rail.
Contract talks between the Teamsters union and the companies usually take place a year apart, but in 2022, after the federal government introduced new rules, CN requested a year-long extension to its existing deal rather than negotiate a new one.
This meant both companies’ labour agreements expired at the end of 2023 and talks have been ongoing since.