Rail labor disputes and at the Port of Montreal | A risk of “unprecedented” disruptions

By water, land and railways: the specter of a paralysis of the logistics chain in Eastern Canada is intensifying with a strike which risks paralyzing the two largest rail carriers in the country from the 22 may. Enough to revive bad pandemic memories for some.

The ultimatum was issued Wednesday by the Teamsters Canada Rail Conference, which represents 9,300 employees of the National Railway Company (CN) and Canadian Pacific Kansas City (CPKC). 98% of them voted in favor of a walkout in three weeks if there are no agreements in principle with the two companies.

“A simultaneous strike at CN and CPKC could disrupt the supply chain in an unprecedented way in the country,” said Teamsters President Paul Boucher during a press conference on Parliament Hill. in Ottawa. This is not our strategy. But we are not convinced that it is the same thing in the case of the two companies. »

This labor conflict, which could slow down the movement of goods from coast to coast, adds to concerns surrounding the impasse between longshoremen at the Port of Montreal and their employer, the Maritime Employers Association, and the uncertainty reigning at the Canada Border Services Agency.

Simultaneous work stoppages would result in significant headaches for the supply chain, which is just recovering from the disruptions caused by the COVID-19 pandemic. From memory, Jacques Roy, professor of transport management at HEC Montréal, does not remember having seen so much uncertainty awaiting key players in the logistics chain from coast to coast.

“I don’t remember that,” he says. The closest is what happened with the pandemic, when we practically shut down the economy deliberately. And even then, the break hadn’t been that long. »

The Trudeau government seems well aware of this disaster scenario. On April 12, the assistant deputy minister and head of the National Supply Chain Office contacted the private sector to paint a picture of the potential consequences.

“You are invited to share your views and discuss the potential impacts on your respective sectors”, underlined the invitation, which The Press was able to consult.

At the port of Montreal, the employment contract of some 1,100 union members expired on December 31 and mediation between the two parties is at a standstill.

“The mediators have agreed to remain in contact with the parties on a regular basis in order to assess the future of things,” confines itself to saying the president of the union, Martin Lapierre, in a bulletin sent to its members on April 29. .

Already plans B

Soaring prices and tariffs, delays and other unforeseen events: the health crisis has taken a toll on importers and exporters of goods. In the industry, we have learned to become more resilient, explains Pierre Dolbec, president of the customs broker Dolbec International. Everyone can find ways to adapt, he says, but it always comes with additional expenses.

This is what awaits the businessman in the event of a walkout at CN and CPKC.

“We would almost paralyze everything relating to land freight,” says Mr. Dolbec, during a telephone interview. Road transport will remain, but that comes with an invoice. Sending a container from Western Canada here by truck costs $12,000. A single container. That doesn’t make any sense. »

A sign that an ultimatum was expected from drivers, locomotive engineers and yard employees of the country’s two main railways, some companies are already working to find alternatives.

In a letter sent Monday to its suppliers – that The Press has obtained –, the Sobeys food chain (IGA in Quebec) recommends that they deploy “significant preparation measures” in order to avoid disruptions. They are recommended, among other things, to reduce the number of partial load orders and to bring forward their purchases, in particular.

“For supplier-managed transportation, we expect you to organize your carrier network and maintain strong service in all regions,” writes Sobeys. We ask suppliers to plan proactively to better manage this constraint. »

With the collaboration of Marie-Eve Fournier, The Press

Labor conflicts looming over the supply chain

CN and CPKC

Both railways could be in neutral on May 22. These two rail carriers operate the two major networks in the country, which would paralyze the supply chain. The main stumbling block in the negotiations concerns working hours. The Teamsters say employers want to eliminate key rest provisions from employment contracts.

Port of Montreal

Mediation between the dock workers at the Port of Montreal and their employer, the Association of Maritime Employers (AEM), has been neutral since the end of April. The approximately 1,100 union members represented by the Canadian Union of Public Employees almost unanimously rejected the employer’s offer on April 17. The AEM claims that with its proposal, it went “as far” as it could. Although relations are strained, the union has not yet called a meeting to vote on a strike.

The customs

Some 9,000 employees of the Canada Border Services Agency are voting on a strike mandate until May 15. Pay parity with organizations like the RCMP, the use of subcontracting and job security are among the points in dispute. In the event of a walkout, essential services would be maintained, but cross-border traffic may be affected.

Port of Quebec

Approximately 80 dock workers at the port of Quebec have been locked out for some 600 days. In this case, activities can continue given that the employer, the Stevedoring Company, is using replacement workers, due to the lack of an anti-scab law in force. Working hours are at the heart of the dispute.