Canadian Pacific Railway Work Stoppage To Risk Supply-Chain: WSJ

Canadian Pacific Railway Ltd. CP trains were halted Sunday morning, stalling global shipments of essential manufactured goods and commodities such as fertilizers, after an impasse in contract negotiations between the company and its conductors and engineers reported The Wall Street Journal.

WSJ noted that the Canadian Pacific and the Teamsters Canada Rail Conference disagreed over what triggered the breakdown in talks.

Since September, the railway has been in negotiations and mediation with the union, seeking increased wage and pension benefits and more rest times.

Canadian Pacific stated if the two sides were unable to agree on a new contract, it would favor shifting the discussions to a binding arbitration process.

The railway’s representatives were still at the negotiating table Saturday night, waiting for a response to a new offer when the union issued its statement that the railway had initiated a lockout.

“The union’s actions show a complete disregard for the unnecessary damage this will cause to the supply chain,” stated Patrick Waldron, a spokesman for Canadian Pacific.

The prospect of a strike prompted several businesses, customers, and politicians to publicly urge the Canadian government to introduce back-to-work legislation that would force striking workers to return to their jobs.

Nutrien Ltd., the world’s largest corporate potash producer, Chief Executive Ken Seitz stated that if the rail strike extends for more than a few weeks, the company will reduce production at its potash mines because its warehouses are full of the fertilizer for planting season.

Price Action: CP shares closed higher by 0.06% at $79.97 on Friday.