As the clock ticks on toward a possible strike or lockout at Canada’s two largest railways, Canadians are bracing for its consequences — from a hit to their pocketbooks to a potential shortage of meat, cars and gas.
Canadian Pacific Kansas City (CPKC) Ltd. and Canadian National Railway Co. (CN) are both facing the potential for an unprecedented work stoppage on Thursday if they are unable to reach deals with workers represented by the Teamsters Canada Rail Conference. As more than half of the country’s exports travel by rail, carrying more than $1 billion worth of goods each day, looming labour disruption at both companies could spell trouble for Canadians.
Already, both major railways have halted shipments that need cooler temperatures, such as meat. A continued interruption in service will cause “unprecedented damage” to Canada’s meat industry, according to Canadian Meat Council CEO Chris White, with some processing plants anticipating losing up to $3 million per week.
For Canadians, such a disruption to the meat industry could be reflected on grocery store shelves, says Daniel Tsai, a lawyer and business professor at Toronto Metropolitan University who is also the editor of ConsumerRights. “I think effects could be within a week, maybe two weeks,” he says. “You may not see it in the pocketbook right away, but over the course of time, you’re going to start seeing shortages and probably price increases.”
A possible work stoppage could also impact the auto industry, Tsai adds, as both railway companies distribute automobiles and auto parts to major population centres across Canada and the U.S. Midwest. This could mean longer wait times for cars to be delivered, especially if there is a supply chain backup.
If a consumer has any concerns about delays, whether it’s for a car or another product, Tsai suggests they inquire and be aware of what the shipping times are. “If there are certain things that can be only transported through rail, try to get an accurate estimate and see if there’s an alternative cost-effective way to have it shipped,” he says, adding that the earlier you do this, the better. “You can then decide if it’s worth an additional cost.”
At the end of the day, Tsai expects a possible work stoppage will hurt people’s pocketbooks. He warns that because railways also transport large amounts of Canadian oil, there could be the potential for gas shortages, too.
In addition, the outcome of a potential work stoppage will be “really painful” for many small businesses who rely on rail to send or receive their products, Canadian Federation of Independent Business vice-president of national affairs Jasmin Guénette tells CTV.
“There’s not any plan B available for businesses. It’s not like suddenly they can call up a trucking company and ask for their goods to be picked up,” he says. “So it’s really unfortunate we are seeing this situation today.”
So far, conversations between the two railways companies and the union have not been fruitful, with each side accusing the other of bad faith. Wages and scheduling are key stumbling blocks.
Labour Minister Steven MacKinnon, who stepped into his role about four weeks ago, stresses that the parties must “do the hard work necessary” to reach a deal themselves without relying on federal intervention. He is set to meet with CN and union representatives in Montreal on Tuesday and with CPKC and the Teamsters in Calgary on Wednesday.
If no agreements are reached, more than 9,000 workers would either be locked out or walk off the job as of 12:01 a.m. on Thursday.