Monday, October 20, 2025

Impending Canada rail shutdown disrupts US supply chains

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A disagreement between Canada’s major national rail companies and their workers might lead to a lockout starting Thursday morning. This could affect important supply chains in North America. Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) are planning to lock out almost 9,300 employees if no deal is reached by 00:01 EST (04:01 GMT).

Approximately 75% of Canada’s exports go to the US, mostly by rail. If this dispute continues, shipments of various goods like grains, beans, potash, coal, and timber could be disrupted. Talks have stalled due to issues like shift schedules, fatigue provisions, and wages.

Prime Minister Justin Trudeau has encouraged both sides to keep negotiating, as many workers, farmers, and businesses are relying on a resolution. The potential impact of this disruption has been highlighted by industry and trade organizations, with warnings of damaging Canada’s trading reputation. Although calls have been made for government intervention, so far, Ottawa has not stepped in.

If an agreement is not reached soon, it could lead to significant consequences for Canadian businesses and families, as well as affect the US economy. Negotiations are ongoing, but there is concern about the potential fallout of a prolonged dispute on both sides of the border.


Vocabulary List:

  1. Disagreement /ˌdɪs.əˈɡriː.mənt/ (noun): A difference of opinion or conflict in views.
  2. Lockout /ˈlɒk.aʊt/ (noun): An action taken by an employer to prevent workers from entering the workplace often during a labor dispute.
  3. Disruption /dɪsˈrʌpʃən/ (noun): An interruption in the normal course or continuation of an activity.
  4. Negotiation /nɪˌɡoʊ.ʃiˈeɪ.ʃən/ (noun): The process of reaching an agreement through discussion.
  5. Consequences /ˈkɒnsɪkwənsɪz/ (noun): The result or effect of an action typically one that is unwelcome or unpleasant.
  6. Intervention /ˌɪntərˈvɛnʃən/ (noun): The action of becoming involved in a situation to alter the outcome.

How much do you know?

Which national rail companies in Canada are involved in the potential lockout?
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC)
Union Pacific and Burlington Northern Santa Fe
CSX Transportation and Norfolk Southern
Amtrak and Via Rail Canada
How many employees are at risk of being locked out?
9,300
5,000
12,500
7,800
What percentage of Canada's exports go to the US mostly by rail?
75%
50%
90%
65%
What are some of the goods that could be disrupted if the lockout occurs?
Grains beans potash coal and timber
Electronics and clothing
Medical supplies and machinery
Automobiles and petroleum products
Who has encouraged both sides to keep negotiating in the rail company dispute?
Prime Minister Justin Trudeau
US President Donald Trump
Canadian Labor Union Leaders
Transportation Minister of Canada
What potential consequences could a prolonged dispute have?
Significant impact on Canadian businesses and families as well as the US economy
No impact on the economy
Short-term minor disruptions in rail shipment
Increase in job opportunities in the rail industry
This question is required

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