Shippers Face Uncertainty as Rail Strike Threatens Movement
Shippers and producers are anxiously awaiting a potential strike by thousands of railworkers this month. If it occurs, freight traffic will come to a standstill, ports will clog, and industries will be disrupted.
John Corey, president of the Freight Management Association of Canada, expressed concern, stating, “The railways are crucial for east-west transportation, and there aren’t many alternatives if they are disrupted. This would render ports useless and halt movement of goods.”
According to the Railway Association of Canada, Canadian railways transport over $350 billion worth of goods and more than half of the country’s exports annually.
Fears of a strike by 9,300 employees at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. have already impacted business as customers sought to reroute cargo following the union’s strike mandate approval in May.
Then-labour minister Seamus O’Regan requested the labor board to review the potential impact of a strike on Canadians’ health and safety to potentially delay the disruption.
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The Canada Industrial Relations Board is evaluating the importance of critical shipments, like water chlorine and gasoline, that must continue in the event of a work stoppage, currently delaying any potential strike until a ruling is issued.
Regardless of the outcome, industry players from agriculture to retail remain concerned about the repercussions of a strike.
Former labor minister Seamus O’Regan’s successor, Steven MacKinnon, discussed the economic and supply chain implications with leaders from the railways and the Teamsters Canada Rail Conference union. Talks between the parties have reached a standstill in recent weeks.
While all parties express a desire to continue negotiations, disagreements over crew scheduling, fatigue management, and safety persist. The railways blame the union for presenting additional demands without bargaining in good faith.
CPKC highlighted the fall season as a peak shipping period, emphasizing the importance of reaching a resolution to avoid disruptions in the transportation of grain and consumer products.
