The truckers’ border demonstrations originated around COVID-19 vaccine mandates: Canadian workers are required to get vaccinated before crossing into the United States, and vice versa.
North American freight train operations also cross the border, but there hasn’t been the same level of dissent among rail workers. The rail unions and some Class I railroads did go to court over rail companies’ implementation of the vaccine mandate for federal contractors — a mandate that has since been halted by the courts — but the industry hasn’t been concerned about border disruptions in the same way that the trucking industry has.
This is because freight railways conduct cross-border operations differently. Unions in all three countries — Canada, the United States, and Mexico — govern how employees cross borders. When freight crosses the border and is transported to another country, rail workers from that country take over.
Prior to COVID, the US freight rail industry lobbied the government to expand the area where Mexican rail workers are permitted to work in the US, arguing that it would improve the operational efficiency of railroads that regularly cross the US-Mexico border, such as Kansas City Southern and Union Pacific (NYSE: UNP).
“When it comes to cross-border movements, it’s truly an apples-and-oranges problem,” said Todd Tranausky, a rail and intermodal expert with consulting firm FTR Transportation Intelligence. “With a truck, the driver must cross the border with the freight.” Whereas with rail, the freight crosses the border, which is a customs clearance process, the crews either do not — or do not do so beyond a predetermined zone.
“As an example, there are crew change locations quite near to the Canadian border, and various unions represent those employees in both the United States and Canada.” Coming in from Mexico, the crews only work to the halfway of the International Bridge at Laredo and then walk back to their home country, never entering the other country. Because operating crews do not access the other nation in the same way, there should not be an issue for rail,” Tranausky added.
According to the Association of American Railroads and the Railway Association of Canada, U.S. rail personnel entering Canada must be vaccinated in accordance with Canada’s vaccination mandate, while Canadian rail workers must comply with any relevant U.S. vaccine regulations.
