Canadian freight trains could stop moving Thursday. If they do, many businesses will be hurt

Businesses across a variety of industries are bracing for freight trains to stop moving Thursday at both major Canadian freight railroads if they can’t resolve a contract dispute with the union that represents engineers, conductors and dispatchers.

The impact will be widespread because so many companies rely on Canadian National and CPKC railroads to deliver their raw materials and finished products. Railroads carry more than $1 billion Canadian (US$730 million) worth of goods each day and delivered more than 375 million tons of freight last year.

More than 32,000 commuters will also be affected in Toronto, Montreal and Vancouver because they rely on CPKC dispatchers to direct those trains over that freight railroad's tracks.

Government officials are playing a more active role in trying to resolve the dispute, with the labor minister meeting with the parties at the CN negotiations in Montreal on Tuesday and with CPKC contract negotiators on Wednesday in Calgary. But so far, Prime Minister Justin Trudeau has been reluctant to force the Teamsters Canada Rail Conference union to accept a deal. Many business groups have urged the government to intervene and force arbitration.

Both railroads are offering raises to what are already well-paying jobs that they say are consistent with other recent deals in the industry. The negotiations are primarily hung up on issues related to the way rail workers are scheduled and concerns about rules designed to prevent fatigue. At CN, there are some additional concerns about provisions that would help the railroad temporarily relocate workers when it is short in other regions.

Nearly 10,000 workers are covered by these contracts. CN said its engineers make about $150,000 a year while