The Canadian government is trying to prevent a major rail strike that could cripple the country, urging the two main railway companies and the Teamsters union to work harder on reaching a deal.
If no agreement is made, Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) will shut down all freight rail services across Canada for the first time ever starting Thursday.
This could cost the country an estimated $1 billion CAD per day. Federal Labour Minister Steve MacKinnon emphasized that the impact will be felt by all Canadians and called on both sides to resolve their differences at the negotiating table.
The New Democratic Party, which supports unions, urged Prime Minister Justin Trudeau not to intervene in the talks.
Rail companies have already started winding down operations, and some shipping companies are rerouting cargo to avoid disruptions.
The strike could have severe consequences for Canada’s economy, especially for the agriculture sector, where delays could lead to spoiled goods and lost sales.
Reuters reported that the potential strike could increase prices and worsen Canada’s affordability crisis .