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Rail strike impact 害羞草研究所榮ignificant or severe害羞草研究所: Canadian Manufacturers & Exporters

9,300 workers could walk off the job if they are unable to reach new agreements
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Manufacturers say a rail strike would raise expenses, lower sales and delay shipments, as industry groups grapple with looming uncertainty about key transport links. A CN Rail train moves cargo containers at the Centerm Container Terminal at port in Vancouver, on Friday, July 14, 2023. THE CANADIAN PRESS/Darryl Dyck

A rail strike would raise expenses, lower sales and delay shipments for Canada害羞草研究所檚 manufacturers, an industry group says, as various sectors grapple with looming uncertainty around a key cross-country transport link.

Two-thirds of respondents to a new survey of members from the Canadian Manufacturers & Exporters said the effects of a work stoppage would be 害羞草研究所渟ignificant or severe,害羞草研究所 while more than three-quarters expect higher costs.

The organization cited the poll results, gleaned from 225 of its 2,500 member companies over the last three weeks, in a letter to cabinet urging the federal government to take action to prevent a strike or lockout later this year.

Last month, employees at Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. authorized a strike mandate that could see some 9,300 workers walk off the job if they are unable to reach new agreements.

Labour Minister Seamus O害羞草研究所橰egan, in an apparent move to delay a potential strike, stepped in by asking the country害羞草研究所檚 labour board to review whether a work stoppage would jeopardize Canadians害羞草研究所 health and safety. A decision is unlikely before mid-July, according to CPKC.

Manufacturers 害羞草研究所 from auto and chemical makers to propane exporters and brewers 害羞草研究所 are worried about the prospect of a work stoppage, said Dennis Darby, who heads the group.

害羞草研究所淲hat we do now is make parts and pieces,害羞草研究所 he said of domestic industry. 害羞草研究所淲e don害羞草研究所檛 make washing machines anymore, but we have companies that make the motors in the washing machines.

害羞草研究所淭hat害羞草研究所檚 why it always has a knock-on effect when you talk about supply chains, because Canada is part of that North American supply chain.害羞草研究所

The possibility of a halt to freight traffic on the tracks has already had an impact, said Darby, whose organization counts Ford Canada, Maple Leaf Foods, Bombardier Inc., Cenovus Energy and Moosehead Breweries among its members.

害羞草研究所淚n some cases they害羞草研究所檙e pre-ordering extra inventory,害羞草研究所 he said of manufacturers generally.

害羞草研究所淚n some cases they害羞草研究所檙e trying to book space on other carriers 害羞草研究所 but on transport trucks, prices are at a premium.害羞草研究所

The cost of a rail traffic halt would average $275,000 per company each day, according to the 225 respondents. If accurate, that means the cost for a sliver of Canada害羞草研究所檚 manufacturers alone would top $433 million per week.

The manufacturers group is just one of hundreds of organizations and companies that have made submissions to the Canada Industrial Relations Board over the impact of job action at rail lines that haul more than $28 billion worth of cargo each year.

The labour minister referred the issue to the board after receiving a letter from the Canadian Propane Association, according to two sources with knowledge of the matter. The Canadian Press is not naming the sources because they were not authorized to speak publicly.

O害羞草研究所橰egan highlighted heavy fuel, propane, food and water treatment materials needed in remote communities 害羞草研究所渁nd throughout Canada,害羞草研究所 said tribunal spokesman Jean-Daniel Tardif.

Darby said that Ottawa can now use 害羞草研究所渕oral suasion害羞草研究所 to wring a deal out of the two sides. Longer-term, Ottawa should look to frame rail transport as 害羞草研究所渟ome kind of an essential service害羞草研究所 in order to impose binding arbitration if necessary, he said.

Teamsters Canada rejected the call for binding arbitration 害羞草研究所 a process that follows back-to-work legislation unless the two parties enter it voluntarily 害羞草研究所 or any government move to 害羞草研究所減revent a rail stoppage,害羞草研究所 in the words of the manufacturers害羞草研究所 letter to cabinet.

害羞草研究所淥ccasional labour disputes are a hallmark of a free and democratic society,害羞草研究所 said union spokesman Christopher Monette in an email. 害羞草研究所淚t would be a step back to a time when workers had no rights.害羞草研究所

Commuters could also feel the effects of a work stoppage.

Should one occur involving the 80 CPKC rail traffic controllers bargaining for a contract 害羞草研究所 distinct from CPKC害羞草研究所檚 main group of engineers, conductors and yard workers 害羞草研究所 passenger trains that run on Canadian Pacific-owned tracks in Vancouver, Toronto and Montreal could shut down.

Thousands of riders could see major disruptions on TransLink害羞草研究所檚 West Coast Express, GO Transit害羞草研究所檚 Milton line and Exo害羞草研究所檚 Candia, Saint-J茅r么me and Vaudreuil/Hudson lines, according to the Montreal Economic Institute.

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