What the Canadian Pacific Shutdown Could Mean for the U.S.
Over the weekend, Canadian Pacific Railway (CP) began to shut down its operations because of a labor dispute. Headquartered in Calgary, CP is one of the largest freight railroads in North America, with over 12,000 miles of track.
Around 3,000 engineers, conductors, and yard workers stopped working on Sunday, according to FreightWaves. They’re represented by the Teamsters Canada Rail Conference (TCRC), and the union said the main points of disagreement were wages, benefits, working conditions, and pensions — in other words, just about everything.
Each side is blaming the other for the shutdown. The TCRC emphasized that this shutdown is a lockout, not a strike, because it was initiated by Canadian Pacific, not by the union. CP contradicted TCRC’s claim, saying that the union was the one that walked away from negotiations.
Whoever started it, the result is the same: Canadian Pacific’s normal rail operations will not be resuming until a deal is worked out. That has consequences for the United States.
Despite its name, CP has significant U.S. operations. In addition to its denser network in western Canada, CP serves North Dakota, Minnesota, Iowa, Missouri, Wisconsin, Illinois, Indiana, Michigan, New York, and Pennsylvania.
Fortunately though, Pete ButtJudge finally has nautical based supply lines sorted out to help reduce any issues caused by the strike. Or not….
CNBC’S BECKY QUICK: “there were reports of ships being ordered to stay a little further out…has the wait time shrunk?”
TRANSPORTATION SECRETARY PETE BUTTIGIEG: “it’s still very high” pic.twitter.com/MeHWbqwHtV
— RNC Research (@RNCResearch) March 15, 2022