WHAT IS COVERED IN TODAY’S INSIGHT?
Quick Read
National Blowback
Global Competitiveness
Production Redesign
Actionable Takeaways
INTRODUCTION
Towards the end of August, a major nationwide strike took place in Canada as the nation’s two largest rail companies, Canadian National and Canadian Pacific, faced off with unions. Over 9,300 workers were either locked out or went on strike over wages and working conditions. The strike was set to paralyze Canadian society, as rail companies also owned tracks that passenger trains used to ferry people between major cities (like Toronto) and surrounding areas. As fears grew of the economic cost of the strike, upwards of $341 million per day, the Canadian government stepped in and forced parties to return to work.
While this was purely a domestic affair, as is the case with many domestic events today, geopolitics was pulled into the picture.
A Canadian potash company, Canpotex, warned that without efficient rail and trucking transport, Canadian potash exports would be derailed, and buyers in other parts of the world, in particular Asia, could turn to other sellers like Russia. For Canpotex, rail was the only real solution, as one week of potash deliveries by train would equal around 10,000 trucks on the road.
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