Toronto/Ottawa – Timing is everything, and with CFIB and Fertilizer Canada, the timing is awful.
Canadian Pacific Railway issued 72-hour lockout notice on Teamsters Canada and close to 3,000 employees could be off the job early Sunday morning.
The Canadian Federation of Independent Business (CFIB) is deeply concerned about the potential upcoming work stoppage at Canadian Pacific Railway (CP) and its impact on Canada’s economy as small businesses are starting to recover from the pandemic and are dealing with supply chain issues.
NOTE CP Rail train’s run north of the Fraser in the Valley and in December, operate the Holiday Train with an annual stop in Agassiz.
The timing could not be worse for our members.
As many businesses rely heavily on rail services to send and receive their goods from Canadian and international suppliers, the work stoppage will further disrupt their operations and create more uncertainty at a time that is already challenging for many businesses. Currently, only 35% of businesses have returned to normal sales, while debt levels and share of businesses considering bankruptcy remain high.
CFIB’s latest research shows 89% of small businesses are impacted by supply chain challenges, with retail, manufacturing, and construction businesses being the hardest hit sectors. Business owners are also seeing increased prices of their goods and services, delays in receiving shipment and an increased cost of shipping to customers.
Three in ten business owners have seen their business’ costs increase by more than 20% due to supply chain issues, while 39% are waiting more than a month for shipments.
The work stoppage will cause additional burdens on many of these businesses and put their future and the livelihood of their employees at a greater risk.
CFIB is asking the federal government to make sure both parties stay at the negotiation table until an agreement is reached while rail services remain fully active.
– Corinne Pohlmann, Senior Vice-President of National Affairs at CFIB
– Jasmin Guenette, Vice-President, National Affairs
Fertilizer Canada is calling on Teamster’s Canada Rail Conference (TCRC) and Canadian Pacific Railways (CP Rail) to swiftly resolve their negotiations to avoid a potentially disastrous shutdown to the essential rail supply chain. If a resolution is not reached promptly a strike is set for March 16th at midnight, with services anticipated to slowdown March 13th. Work stoppage during the crucial spring seeding season will have crippling effects on the economy and agricultural sector, national and globally.
While we respect the collective bargaining process, a work stoppage will compromise Canada’s position as a leading global fertilizer supplier and could result in fertilizer production facilities being forced to shut-in production, impacting Canadian workers, the economy, and food security.
“Fertilizer Canada and our members are greatly concerned with the looming CP strike,” says Karen Proud, President and CEO, Fertilizer Canada. “The agriculture sector is already experiencing supply challenges compounded by the war in Ukraine and cannot withstand anymore disruption to the supply chain without severe consequences for farmers, food security in Canada and worldwide, and the Canadian economy.”
75 per cent of all fertilizer produced and used in Canada is moved by rail, the industry is dependant on rail to move product across the country and into international markets who are counting on supply coming from Canada. There is no other alternative transportation method that currently has capacity or can be brought online in time to mitigate the impact of the work stoppage.
TCRC represents more than 3,000 Teamsters union members who work as engineers, conductors, trainpersons, and yardpersons. A work stoppage of any duration will impact nearly all commodities within the Canadian supply chain and cost the Canadian economy millions of dollars.
