Possible rail work stoppage would be ‘catastrophic’ to Canadian economy

Close to 10,000 conductors, engineers and rail yard workers in Canada could be on strike by Thursday.

The teamsters – the union representing those employees – has served 72-hour strike notices to Canadian National Railway (CN) and Canadian Pacific Kansas City.

CN has issued a lockout notice to the union, advising them of its intentions unless an agreement or binding arbitration can be secured before then.

Ryan Greer, vice president of public affairs and national policy for Canadian Manufacturers & Exporters (CME), said Canada’s railways transport $380 billion worth of goods annually.

He said a work stoppage would be “catastrophic” to the Canadian economy.

“That’s over a billion dollars each day,” said Greer. “At CME we surveyed our members directly on this question and we found the average daily financial impact on manufacturers will be approximately $275,000 each day of the stoppage.”

In the Maritimes, a strike or lockout would hit hardest at the ports of Saint John, N.B., and Halifax, both heavily reliant on rail.

“You’re going to most immediately see significantly reduced activity at the ports when rail cars are no longer coming and leaving. That itself could mean some possible layoffs at those facilities,” said Greer. “You’ll probably see some ships re-routed to U.S. ports.”

The CN Gordon Yard in Moncton, N.B., is pictured. (Source: Derek Haggett/CTV News Atlantic)Christopher Monette, director of public affairs for Teamsters Canada, said the main sticking points for rail workers are safety, scheduling and fatigue management after long shifts.

In an interview with CTV News on Friday, Monette said he immediately thinks of the ports in Saint John and Halifax when asked what a work stoppage would mean in the Maritimes.

“Obviously a lockout would mean our members are no longer able to safely operate trains in the Maritimes and continue working to keep the economy of the Maritimes on track,” said Monette.

In a news release sent Monday, CN said it offered the union a modern agreement that improved wages, safety and work/life balance, but the offer was refused.

Jonathan Abecassis, director of public affairs for CN, told CTV News on Friday a possible strike or lockout would be felt by industries from coast to coast.

“It’s very simple: nothing is going to move by rail. Port of Halifax, which volumes significantly move by rail, will be impacted. In Saint John, same thing. In Belledune, same thing,” said Abecassis.

CN Rail workers could go on strike August 2024. (Source: Derek Haggett/CTV News Atlantic)

CN’s news release stated both parties met over the weekend, but no meaningful progress was made and the two sides remain very far apart.

“Unless there is an immediate and definite resolution to the labour conflict, CN will have no choice but to continue the phased and progressive shutdown of its network which would culminate in a lockout,” stated the release.

Greer believes it will depend on specific chains in specific parts of the country when the consumer will notice the effects of a possible work stoppage.

“I expect you might see some smaller, medium-sized retailers that feel first. They’re of course maybe less able to procure alternative arrangements and large trucking availability,” said Greer. “It’s going to take a little bit of time on the retail grocery front before you would start to see a bit of impact, but it will start to show itself eventually.”