Ottawa, March 18, 2022 – Canadian Manufacturers & Exporters (CME) is calling on Canada Pacific Railway and the Teamsters Canada Rail Conference to come to an immediate agreement and avoid labour disruptions that would inflict serious harm to Canadian manufacturing and exporting operations. If a breakthrough cannot be achieved by the lockout deadline, the federal government must take quick and decisive action to end the dispute.
“A work stoppage at CP Rail is the last thing Canadian manufacturers need. In fact, some manufacturers have already had to shut down their operation in anticipation of a strike or lockout. After months of economic hardship and successive supply chain disruptions that are beyond our control, we now find ourselves faced with a new threat. We have the power to stop this, and CP Rail, the union, and the government must act now” said Dennis Darby, President and CEO of CME.
Canadian manufacturers are among the biggest users of rail transportation services. CP Rail is a critical link in manufacturing supply chains, and it is how we move our goods to markets across North America. Our industry employs over 1.7 million Canadians, makes up more than 10 per cent of our GDP, and represents two-thirds of Canada’s value-added exports.
In a recent survey conducted by Canadian Manufacturers & Exporters, 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 is the fact that a labour 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 work stoppage would seriously impact our global competitiveness, exacerbate supply chain problems, and drive away investment into Canadian manufacturing” added Darby.
“This situation must be avoided at all costs, and we implore both sides to reach an agreement now. The federal government can no longer afford to be a bystander either, and we call on them to intervene if the impasse cannot be broken” concluded Darby.
- The manufacturing sector represents more than 10% of Canada’s gross domestic product.
- Manufacturers directly support more than 1.7 million jobs in Canada.
- The total manufacturing sales in 2019 surpassed $685 B.