Conservative Leader Pierre Poilievre suggests that the recent national railway strike can be attributed to high inflation.
Following the Liberal government’s request to the Canada Industrial Relations Board (CIRB) to enforce binding arbitration on the railways and their union, more than 9,000 railway employees were mandated to return to work at the start of this week.
During a press conference on Aug. 29, Poilievre stated, “The cause of these strikes is inflation. Inflation necessitates strikes as workers and unions fight to regain what they lost in purchasing power. And how did this inflation occur? The government doubled the debt.”
Contract negotiations between Canadian Pacific Kansas City (CPKC), Canadian National Railway (CN), and their union collapsed on Aug. 22, resulting in 9,300 employees being locked out.
Canadian railways handle approximately $380 billion worth of goods each year, with 32,000 Canadian commuters relying on the rail system daily. On Aug. 28, Prime Minister Justin Trudeau
expressed concerns over public safety due to the shutdown, highlighting the risks posed to essential shipments like propane for hospitals and chlorine for drinking water, prompting government intervention.
Although the Teamsters union called for higher wages, improved safety measures, and better work-life balance for employees, CN and CPKC claimed that multiple offers made in good faith were turned down by the union.
Poilievre highlighted that 2023 experienced the highest number of strike days since 1986, another year marked by high inflation in Canada.
Statistics Canada reported 778 strike days in 2023, compared to 748 in 1986.
Over 100,000 workers at the Public Service Alliance of Canada engaged in a
two-week strike in 2023 to secure higher wages, remote work options, and enhanced work facilities, resulting in an 11.5 percent wage hike over the next four years.
Canada’s inflation rate surged to 8.1 percent in June 2022 before dropping to 2.8 percent in June 2023. In June 1981, inflation peaked at 12.8 percent before declining to 3.8 percent in June 1986.
In response to escalating inflation, the
Bank of Canada raised its benchmark rate from 0.5 percent in March 2022 to 5 percent by June 2023. Subsequently, the
central bank implemented two rate cuts over the summer to address declining inflation, reducing the benchmark interest rate from 5 percent to the current 4.5 percent.
