(Ottawa) The United States Chamber of Commerce (UCC) is joining organizations representing business people across the country in calling on the Trudeau government to take the necessary steps to avoid a work stoppage that would paralyze rail transportation in Canada.
In a joint statement with its Canadian counterpart, the Canadian Chamber of Commerce (CCC), the CCEU argues that a strike and lockout that would cripple Canada’s two major rail companies would not only have a “devastating” impact on Canadian businesses and families, but also a “significant” impact on the U.S. economy.
It is rare for an organization representing business people in the United States to get involved in a potential labour dispute in Canada. But given the highly integrated supply chains between the two countries and the importance of rail transportation on the North American continent, the CCEU felt it was its duty to intervene.
“The Canadian Chamber of Commerce and the United States Chamber of Commerce urge the Government of Canada to take immediate action to prevent any disruption to Canada’s rail network. A shutdown of rail services will be devastating for Canadian businesses and families and will have a significant impact on the U.S. economy,” reads a statement released by the two organizations.
“The magnitude of bilateral trade and the highly integrated supply chains between Canada and the United States mean that any significant rail disruption will put the livelihoods of workers in multiple industries on both sides of the border at risk. The Government of Canada must take action to ensure that goods continue to flow reliably between our two countries,” the statement added.
The statement was signed by CCC President and CEO Perrin Beatty and his U.S. counterpart, Suzanne P. Clark.
Countdown has started
This statement by the CCEU comes as the countdown to a work stoppage has well and truly begun. It also comes at a time when the Minister of Labour, Steven MacKinnon, is holding a series of meetings and making statements to encourage the parties to reach an agreement.
On Tuesday, Minister MacKinnon was in Montreal to meet with the parties and federal mediators and to urge CN, CPKC and the Teamsters “to fulfill their responsibility to Canadians” by reaching agreements at the bargaining table before Thursday. He is scheduled to hold similar meetings in Calgary on Wednesday. And his message will be the same in both cities.
“Reach a deal at the table. Workers, farmers, businesses and all Canadians are counting on it,” the minister said on the X network Tuesday after his talks in Montreal.
On Sunday, the union representing thousands of workers at Canadian Pacific Kansas City (CPKC) announced that it had served a 72-hour strike notice on the railway company.
The Teamsters Canada Rail Conference (TCRC) issued a press release stating that if the parties fail to reach a last-minute agreement, workers will walk off the job as of 12:01 a.m. Eastern Time on Thursday.
Shortly after the union’s statement, Canadian National (CN) issued a notice indicating that it intended to lock out workers on the same date unless a settlement or binding arbitration was reached.
The result: More than 9,000 workers at Canada’s two major rail companies could be on strike or locked out starting Thursday, disrupting supply chains that many industries rely on.
According to the Railway Association of Canada, rail lines move more than $1 billion worth of goods every day. More than half of the country’s exports travel by train.
The Canadian Federation of Independent Business (CFIB) has already warned that a work stoppage at the country’s two major railway companies would be devastating for small businesses.
She noted that many small businesses rely on rail services to send and receive essential goods, products and materials.
The CFIB argued that the work stoppage could also disrupt public transportation and travel to major cities such as Montreal or Toronto.