Negotiations between the union and CPKC stalled as they have failed to reach commitments over safety-critical fatigue provisions that would mean longer hours for rail workers. The union said the move would increase the risk of derailment and other accidents.
At issue with CN are rule changes that would see rail workers forced to relocate across the country for months at a time to cover labor shortages in remote communities.
Both parties have accused the other of not taking the bargaining process seriously, and the breakdown saw approximately 9,300 workers locked out early Thursday.
In an email, Josh Linville, vice president of fertilizers with StoneX, noted that the impact on the agricultural sector will come down to how long the strike lasts.
“A lot of the fallout still comes down to how long this lasts. A couple of days or a week shouldn’t have a huge impact on the fertilizer markets. However, much more than that and we likely start seeing inland values rise on tougher logistics/market trying to establish new logistical routes,” he said.
Securities Disclosure: I, Dean Belder, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
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