Union Pacific warns of ‘devastating penalties’ from Canada rail strike By Reuters
By Ananta Agarwal
(Reuters) – U.S. railroad operator Union Pacific (NYSE:) has warned {that a} potential rail strike in Canada may have “devastating penalties” on the North American economic system.
Greater than 2,500 Union Pacific automobiles per day wouldn’t transfer throughout the border, CEO Jim Vena mentioned in a letter to Canadian Labor Minister Steve MacKinnon on late Monday.
“A few of these impacts have already begun,” Vena mentioned.
Railroad operators Canadian Pacific (NYSE:) Kansas Metropolis and Canadian Nationwide Railway (TSX:) are bracing for a piece stoppage by Teamsters union members, which may begin as early as Thursday as talks to barter a brand new labor contract are but to succeed in an settlement.
The union’s calls for included higher wages and advantages, provisions for fatigue administration and improved crew scheduling.
Roughly 30% of freight rail operations in Canada cross the northern border yearly, the Affiliation of American Railroads mentioned on Tuesday.
Within the first half of the yr, rail transport accounted for about 14% of the overall bilateral commerce of $382.4 billion between the U.S. Canada, based on the U.S. Division of Transportation.
A strike may additionally increase prices for a lot of industries, which can be compelled to both discover last-minute alternate options to rail service or face shut down, Vena mentioned.
“For each someday of disruption, you may anticipate a minimum of 3-5 days of restoration – maybe much more, given two Canadian railways are impacted.”
Union Pacific hyperlinks 23 states within the western two-thirds of the U.S., connecting with the Canadian railway community and serving all six Mexico gateways.
MacKinnon is assembly with the 2 Canadian rail corporations and the union in Montreal on Tuesday and in Calgary on Wednesday.
U.S. freight brokerage C.H. Robinson had mentioned on Monday it has began diverting ocean cargo of some U.S. prospects away from Canadian ports.
