Customers of Canadian Pacific Railway (CP) are growing increasingly concerned about a March 16 strike deadline that is fast approaching and could disrupt rail service later this week.
Earlier this month, the Teamsters Canada Rail Conference reported the results of a strike vote by unionized CP Rail employees. According to the union, more than 96% of members voted in favour of a work stoppage at the Calgary-based railway.
While neither CP Rail nor the Teamsters have provided an update on the status of talks, the union had previously indicated a strike could begin after midnight on March 16. The union has said wages, benefits and pensions are the main issues behind the potential job action.
Shippers who rely on rail transport say a strike, if it happens, would come at a time when many industries are already dealing with supply chain disruptions and continued fallout from the pandemic.
The Canadian Manufacturers and Exporters said a recent survey of industry members showed 90% have experienced problems with the supply chain over the last 12 months.
The trade group says Canadian manufacturers have lost an estimated $10.5 billion in sales because of transportation network disruptions and simply cannot afford another service interruption.
Fertilizer Canada, which represents manufacturers, wholesale and retail distributors of fertilizers, warned that a rail strike could result in fertilizer production facilities being forced to shutdown production, a situation that would be “crippling” during farmers’ crucial spring seeding season.
Seventy-five per cent (75%) of the fertilizer used by Canadian farmers is shipped by rail and there is no other transportation method that currently has capacity or can be brought online in time to mitigate the impact of a strike.
Cattle producers also warned of the potential devastating impacts of a CP Rail work stoppage. Last summer’s extreme drought has resulted in a widespread shortage of cattle feed in western Canada, and many producers have been relying on CP Rail for shipments of corn from the U.S. to feed their animals.