Manufacturer Information Hub – Supply Chain & Labour Disruptions
Ports, Trains and Automobiles...Manufacturers Cannot Afford Yet ANOTHER Series of Critical Infrastructure Disruptions
Overview
Costly labour related supply chain disruptions are becoming more common for Canada’s manufacturers.
The next disruption for Canadian manufacturers could come as soon as August 22. If a new collective bargaining agreement is not reached between Canada’s two Class I railways, Canadian National (CN) and Canadian Pacific Kansas City (CPKC) and the Teamsters Canada Rail Conference (TRTC) union, a strike or lockout could take place as soon as midnight on August 22.
Elsewhere, the Port of Montreal labour negotiations continue to be stalled and labour uncertainty continues to surround BC Ports.
Manufacturers cannot afford to have their businesses and workers continually threatened by a critical supply chain labour disruptions. Canada’s industrial economy is trade exposed. More than any other industry, manufacturers rely on railways to access critical inputs and bring goods to customers. When work stops at these critical supply-chain nodes, manufacturers across the country are unfairly and disproportionately penalized by forces entirely outside of their control.
CME will update this information hub with all our activities along with the latest news and resources regarding the potential rail strike so that your business can stay informed.
CME IN ACTION
Here is how CME is working to avert a crisis:
- Statement from Dennis Darby following the federal intervention to restart rail services
- Read our joint statement on behalf of Canada’s leading industry groups calling for a resolution
- Read our statement on the Canadian Industrial Relations Board ruling, which paved the way for labour stoppages
- Read our open letter to Federal Ministers engaged in negotiations
- See our activities in the media below, raising awareness of scope of potential problems and adding public pressure to the process.
- We have identified key influencers and decision makers at all levels of negotiations and are working to ensure the paralyzing impact this strike could have on Canada is understood by all
- Benchmark yourself against other manufacturers: see who is doing what to prepare in our May rail survey results
CME IN THE MEDIA
- CME Statement from Dennis Darby following the federal intervention to restart rail services
- Associated Press World News: Canadian freight trains could stop moving Thursday. If they do, many businesses will be hurt
- Watch BNN Bloomberg: Morning Markets – Economic Impact of Possible Rail Stoppage
- Global News: Why Canada’s ‘unprecedented’ rail shutdown is ‘high stakes’ for exporters
CTV News: Possible rail work stoppage would be ‘catastrophic’ to Canadian economy - Canadian Press: As rail shutdown looms, business groups warn of dire consequences unless feds step in
- Reuters: Industry groups and companies fret ahead of a Canada-wide freight rail stoppage
- National Association of Manufacturers: Manufacturers Warn of Supply Chain Disruptions from Canadian Rail Shutdown
- CME’s statement on the Canada Industrial Relations Board (CIRB) ruling regarding a rail stoppage
- Toronto Star: Rail shutdown possible in two weeks, as lockout warnings follow labour board ruling
- CBC: CPKC, CN Rail both threaten lockout if labour deal isn’t reached by Aug. 22
- CME’s Statement on the passage of Bill C-58
Follow us on social media for updates in real time
UPDATE ON LABOUR ACTION
RAILWAYS : CN & CPKC
CME applauds the federal government’s decision today to send the national rail dispute to binding arbitration. Manufacturers are calling on the Canada Industrial Relations Board (CIRB) to order a resumption of rail service as soon as possible.
We are pleased the government has responded to our calls to intervene and protect the public interest by exercising the Minister of Labour’s authorities under Section 107 of the Canada Labour Code. The wind down of rail services over the last several days culminating in the full stoppage this morning has inflicted significant supply chain and operational challenges for manufacturers across the country – issues that will take days if not weeks to resolve. A prolonged stoppage would have imposed enormous costs on Canadian business and workers.
Status:
- Rail could resume as early as 2-4 days from now, pending the Canadian Industrial Relations Board process.
BC PORTS
Federal mediators are working with the parties to help them reach a deal.
Potential strike timeline: 72-Hours Notice
PORT OF MONTREAL
Negotiations are continuing to renew the collective agreement of Port of Montreal longshore workers, which expired on December 31, 2023.
Potential strike timeline: 72-Hours Notice
By the Numbers
- Given manufacturing share of exports, an estimated $551+ MILLION in goods would not be moving on rail lines each day of a strike.
- 66% of manufacturers surveyed by CME in May 2024 indicated the strike would have dire consequences for their operations – and for Canada.
- Last year’s 13-day strike at British Columbia ports disrupted more than $10 billion worth of trade.
- According to a CME survey, the BC Ports strike cost individual manufacturers an average of $207,000 per day.
- For every week of strike at the B.C. ports, it took an estimated three weeks to untangle furled supply chains.
Manufacturing Fast Facts
- The manufacturing sector represents more than 10% of Canada’s gross domestic product.
- Manufacturers directly support more than 1.7 million jobs in Canada.
New challenges require new policy recommendations.