By Canadian Press

Business groups call on federal government to prevent rail work stoppage

Aug 21, 2024 | 7:07 AM

A coalition of business groups is calling on the federal government to prevent a work stoppage at Canada’s two biggest railways.

A phased shutdown of the networks at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. is already underway as the clock ticks down on contact talks with the Teamsters Canada Rail Conference.

Unless deals are reached, rail service at both companies is poised to stop at 12:01 a.m. ET on Thursday.

In a joint statement, the Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business and Canadian Manufacturers and Exporters say Ottawa needs to take action to ensure the continuation of rail services.

They say the federal labour minister can refer the dispute to the Canada Industrial Relations Board for binding arbitration and prohibit a strike, lockout or end any ongoing stoppage pending a resolution.

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Alternatively, the business groups say the government use back-to-work legislation.

Medicine Hat businesses facing pressure

The threat of a shut down has put a pair of Medicine Hat businesses in a pinch as trucking is not a realistic option, they say.

Methanex said in a statement Tuesday it’s been working on ways to keep it’s Medicine Hat plant running in the event of a national railway stoppage.

The statement from Methanex included that 75 per cent of it’s product is shipped out by CPKC – and there is no Plan B if there is a disruption.

READ: Shipping by truck not realistic for a pair of Medicine Hat businesses

Karen Proud, president and CEO of Fertilizer Canada, said CF Industries in Medicine Hat, ships out a similar per cent of their product by rail, and shipping by truck isn’t really an option.

“There are not enough trucks on the road to deal with fertilizer products. There just aren’t,” Proud said.

“The costs are really significantly more. For a product that is meant for farmers, we can’t add the extra cost into the system, even if that was an option.”

A statement from Methanex also said that a production shutdown wouldn’t happen immediately in the event of a rail stoppage, but with limited storage capacity, a loss of rail service, even for a short period could result in a shutdown of it’s facility in Medicine Hat.