The potential shutdown of all rail services in Canada due to a labour dispute could have severe consequences for commerce, sparking debates on the need for policies to prevent such disruptions while others emphasize the importance of maintaining labour bargaining power.
As the labour dispute continues between the Teamsters Canada Rail Conference and Canadian National Railway and Canadian Pacific Kansas City, the companies have announced plans to lock out workers on Aug. 22 if no deal is reached. The Teamsters are also prepared to call a strike on that date.
The dispute was paused in May when then-Labour Minister Seamus O’Regan asked the Canadian Industrial Relations Board (CIRB) to determine if rail services were essential to health and safety. On Aug. 9, the CIRB ruled that no commodity was essential enough to override the right to collective bargaining.
John Corey, president of the Freight Management Association of Canada, criticized this decision, stating that shutting down Canada is a significant issue and suggesting that rail workers should be subject to binding arbitration.
Greg Gormick, a rail consultant, supported the CIRB decision, highlighting the importance of retaining the right to strike for bargaining power.
The new Labour Minister, Steven MacKinnon, urged both parties to reach a negotiated agreement without government intervention.
Canadian railways transport around $380 billion worth of goods annually, including over $200 billion in exports. A prolonged strike would disrupt supply chains, leading to reduced product availability and potential economic impacts.
Various issues such as crew scheduling, rail safety, and fatigue management are at the core of the dispute between the unions and railways.
Despite offers made by the railways addressing wages and rest, agreements have not been reached, leading to a potential escalation of the conflict.
Worker turnover is high in the rail industry, with concerns raised about the demanding lifestyle and working conditions.
Decades of government reports on necessary changes within the industry have yet to be implemented, leading to ongoing challenges in the rail sector.
With the potential for a significant disruption to rail services, the impact on commerce and the economy could be substantial, emphasizing the need for a resolution to the ongoing labour dispute.
“There used to be a second CN line from Sioux Lookout to Thunder Bay, but the asset-strippers ripped it up several years ago,” Gormick explained.
Gormick mentioned that CP once had a double-tracked line from Winnipeg to Thunder Bay, but it was converted into a single track in the 1990s. This left the railway with limited capacity to handle CN shipments during bridge and track repairs.
This situation reflects “a vital transportation system with very little redundancy or resiliency” and is “another example of what comes from not having a real national transportation plan,” Gormick stated.
“If there’s a country that cannot afford to lose track of its transportation system, it’s Canada. Go right back to the roots of Canada. I mean, no railway, no Canada,” he emphasized.
