Canadian Manufacturers Call On the CP Railway and the Teamsters Canada Rail Conference to Avoid Labor Disruption of Service

With a strike deadline just hours away, the Canadian Manufacturing Coalition (CMC), a group made up of 16 of Canada’s manufacturing trade associations, issued a statement urging the Canadian Pacific Railway and the Teamsters Canada Rail Conference to reach an immediate agreement and avoid labor disruptions that would inflict serious harm to Canadian manufacturing and exporting operations.

“The CMC points out that Canadian manufacturers are some of the biggest users of rail transportation services,” the CMC said. “CP Rail is a critical link in manufacturing supply chains, and it is how we move goods to markets across North America. Collectively, the industry employs over 1.7 million Canadians, makes up more than 10 percent of our GDP, and represents two-thirds of Canada’s value-added exports.”

“Given the many disruptions of the past year and the ongoing supply chain crisis, our industry cannot afford another major transportation network interruption,” the statement said. “In a recent survey conducted by Canadian Manufacturers & Exporters (CME), nine out of ten Canadian manufacturers are encountering supply chain issues, with over 60 per cent rating the impact of these disruptions as either major or severe. In addition, Canadian manufacturers surveyed say they have lost about $10.5 billion in sales because of disruptions in the supply chain and are now experiencing nearly $1 billion in increased costs.”

“Adding to our concern,” the CMC statement continues, “is the fact that a labor disruption at CP Rail will deal another blow to Canada’s reputation as a good place to do business and as a reliable supply chain partner. A strike would seriously impact our global competitiveness, exacerbate supply chain problems, and drive away investment into Canadian manufacturing.”