CN and CPKC locked out 9,300 workers, and trucking warned it could not fill the gap

In August 2024, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) locked out about 9,300 engineers, conductors and yard workers represented by the Teamsters Canada Rail Conference. It was the first time freight traffic on both of Canada's largest railways had stopped at the same time.

The lockouts began at 12:01 a.m. ET on Aug. 22 after talks broke off. The union represented about 6,000 CN workers and 3,300 at CPKC. The Railway Association of Canada said the two railways together haul about $1 billion in goods a day.

Why trucks could not replace trains

Mike Millian, president of the Private Motor Truck Council of Canada (PMTC), said it takes 200 to 300 trucks to replace one train, and the trucking network did not have that capacity. Where shippers could find trucks, he expected truckload rates to rise by 200% to 300%. He also warned that dangerous goods normally moved by rail would shift onto highways. One PMTC member said the shutdown would hit 65% of its revenue, which came from intermodal work.

On Aug. 14, the Canadian Trucking Alliance (CTA) said members reported that rail customers had been booking extra truck capacity since February. It warned that capacity had limits depending on commodity and lane.

Ports

• The Port of Halifax said rail served about 60% of its containerized cargo, and clearing backlogs could take weeks.
• The Montreal Port Authority said about 45% of goods through the port relied on rail. It had increased truck capacity at its terminals.

The lockout followed a ruling earlier in August by the Canada Industrial Relations Board that rail services did not meet the legal test for essential services under the Canada Labour Code.