Industry fears 'catastrophe,' economic fallout ahead of potential rail stoppage

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A CN Rail train engine is shown in this 2019 file image.

North American industry groups and shippers are bracing for an unprecedented simultaneous stoppage at both of Canada's main railway companies that could inflict billions of dollars of economic damage.A CN Rail train engine is shown in this 2019 photo. North American industry groups and shippers are bracing for an unprecedented simultaneous stoppage at both of Canada's main railway companies that could inflict billions of dollars of economic damage.

"It's a catastrophe. Literally nothing would move," said Greg Northey, vice-president of public affairs at Pulse Canada, a lobby group representing the pulse crop industry. The rail companies say they will start locking out workers on Aug. 22 if they cannot reach a labour deal while the union says it is ready to call a strike for that date.CPKC, CN Rail both threaten lockout if labour deal isn't reached by Aug. 22

"Factoring in the millions of Canadian jobs that would be impacted, the magnitude of the disruption is daunting," the Business Council of Canada, a lobby organization, said in an open letter to Prime Minister Justin Trudeau and Labour Minister Steven MacKinnon.A stoppage would also hit the United States, given the degree of integration between the two economies. Canada sends around 75 per cent of all goods exports south of the border.

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