Ottawa tells rail companies, union to work harder to avert crippling stoppage

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Unless agreements are reached, both Canadian National Railway and Canadian Pacific Kansas City will shut down at the same time early on Thursday for the first time in history

The Canadian government, trying to head off a crippling transport stoppage, on Monday told the country’s two main railway companies and the Teamsters union to work harder to reach labor deals.Canada – the world’s second-largest country by territory – relies heavily on rail to ship grain, fertilizer and commodities, and the country’s main business lobby group estimates losses would hit $1-billion a day during a stoppage.

“The parties must do the hard work necessary to reach agreements at the bargaining table and prevent a full work stoppage,” he said. CN Rail and CPKC have already stopped accepting shipments of hazardous goods and are winding down their operations.Canada is a major agricultural producer, and farmers will start bringing in their harvests in August and September.

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