Nearly 9,300 workers across the Canadian National Railway and Canadian Pacific Kansas City were prevented from working after the two organisations failed to agree a deal with the Teamsters Union.
Canada sends around 75% of all the goods it exports to the US, mostly over rail.
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Commenting on the situation, American Apparel & Footwear Association president and CEO Steve Lamar said: “Rail is an essential part of the eco-system that helps you get dressed every day. AAFA’s members – which represent more than 1,000 global apparel, footwear, travel goods, and accessories brands – manage global supply chains that contribute to more than $490bn in annual US retail sales.
“A work stoppage/lockout at Canadian National (CN) and a strike at Canadian Pacific Kansas City (CPKC) comes at a critical time for back-to-school and just at the start of the holiday inventory rush. Approximately 30% of clothes, shoes, and accessories move by rail. Those goods include children’s apparel, backpacks, winter coats and boots, work shoes, uniforms – including those for essential workers, and many more everyday essentials. Amid numerous supply chain disruptions by sea, companies are already diverting cargo and facing distressed trucking routes. It is imperative that all logistics stakeholders continue to work together to support modern and efficient systems, and ensure there are safe and responsible workplaces that power them.
“We need representatives of the unions and management to return and stay at the negotiating table to end this lockout and strike and ensure that a fair, sustainable, and long-term deal is reached. Keeping goods moving supports not only the rail jobs at issue, but also the jobs of millions of other workers up and down our supply chains.”
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By GlobalData
