Ripple effect expected in Medicine Hat as railway labour dispute draws close to strike

Alberta business groups said they’re concerned about the looming work stoppage.

Adam Legge, president of the Business Council of Alberta, said Canada’s railways are essential to nearly every sector of the national economy especially as harvest season approaches.

The Chemistry Industry Association of Canada’s president and CEO Bob Masterson told CHAT News he expects all Canadian rail shipments will come to a halt by the end of the day Tuesday.

The shipment stoppage would come ahead of the Thursday strike or lockout deadline for teamsters and the two railways in Canada.

Masterson said Medicine Hat’s Methanex, a member company of their association, will be forced to shut down once it reaches capacity.

“You want to keep the facility running, even if it’s at a more limited level. But once they fill up those containers, then they have no choice but to shut down,” Masterson said.

“If they shut down and then eventually the rail disruption ends, you’re still talking several days to be back into production to be able to get goods into the marketplace.”

On Tuesday, stakeholder relations manager Danielle Semrau-McLean said Methanex’s facility will not be temporarily halting production Thursday.

“In anticipation of a work stoppage, Methanex has been developing and implementing strategies to keep our plant running, protect our business and maintain our critical supply chain to customers,” Semrau-McLean wrote in a statement to CHAT News.

“However, as CIAC stated, the scale of our production means we have limited storage capacity to manage an extended work stoppage. Given this, a loss of rail service, even for a short period, could result in a shutdown of our facility and a significant financial impact on our business and customers.”

Lisa Dressler, executive director of the Southeast Alberta Chamber of Commerce, said whether it’s a large industrial company or a small business, the impact will be felt.

“Any impacts that we have on movement of goods will have an impact right down to the consumer,” Dressler said.

“When you think about potential work stoppages or increased prices because now you’re moving goods by truck versus rail, there is a trickle-down effect when you see this kind of impact in our economy.”

Dressler said that strike action like this can hinder the federal government’s negotiating power.

“When we consider that the Canada-U.S.-Mexico trade agreement is due for negotiation in 2026, we have to make our best effort across this country to ensure that we’re a viable and strong economic trading partner,” Dressler said.

Masterson added that he expects political pressure for a resolution of the labour dispute to build, as the implications with the chemistry industry will be felt south of the Canadian border.

“Two-thirds of what we produce goes to the United States each and every day,” Masterson said.

“It goes into their automotive industry, it goes into their forest products industry, their mining industry,” he added.

“Our inability to serve those markets is also going to be very disruptive in the United States. Our chlorine goes to treat drinking water on West Coast cities up and down the West Coast,” he added.

“This will have significant implications for public safety and the economy south of the border.”

Masterson said disruptions started a week ago, when CPKC started an embargo on the shipment of certain items like chlorine.

Adding, there’s a countdown for when that material simply has to be there before you face a potential public health crisis and a boiling water advisory.

All that could come in a matter of days or weeks.

A website encouraging people to write to the government has been set up at stopthestrike.ca.

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Clarification: Methanex will close only once it reaches capacity, as clarified by Danielle Semrau-McLean, stakeholder relations manager at Methanex.

by Jesse Gill

Ripple effect expected in Medicine Hat as railway labour dispute draws close to strike

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