MONTREAL — As the strike against the Canadian National Railway continues for a third day, industry groups across Canada are warning the work stoppage is having a major impact on the economy.
A vehicle processing and transshipment company in Nova Scotia is warning its employees that it will begin laying people off next week if the strike by 3,000 Teamsters Canadian Rail Conference members continues much longer, Halifax Today reports. Further west, Quebec has started rationing propane use and Premier François Legault says the province only has five days of fuel in its reserves, Global News reports.
Industry groups are warning that other companies may start laying people as well.
“In the minerals and metals sector, experience has demonstrated that a rail stoppage significantly impacts the ability of companies to bring essential inputs to their mines, and the ability to move mineral products and by-products to down-stream customers,” says Pierre Gratton, president of the Mining Association of Canada. “MAC members have advised that this strike will result in a severe reduction or elimination of railway capacity and will trigger the closure of mines with concurrent lay-offs of thousands of employees beginning in a matter of days.”
This week, industry groups called on Canadian Prime Minister Justin Trudeau to pass legislation forcing CN employees back to work. The Liberal government has not indicated whether or not it will call back parliament, but officials say they are watching the situation closely and hoping for a speedy resolution.
In a letter posted on CN’s website, CEO JJ Ruest writes that he regrets the impact the strike is having across Canada.
“All of us at CN are very aware of and regret the impact that the strike is having on our customers, supply chain partners, the Canadian economy, trade in general, and the public,” Ruest writes. “We remain committed to finding an equitable resolution and look forward to getting back to re-establishing the reliable service to which our customers are accustomed.”
Conductors, train persons, and yard workers walked out at 12:01 a.m. Tuesday. The railroad and the union have been in negotiations for seven months and have been working with federal mediators for the last five months. The railroad’s previous labor agreement expired in July. In September, Teamsters members overwhelming voted in favor of a strike if a solution could not be reached. The railroad had previously suggested a binding arbitration agreement forged by federal mediators but the union rejected that offer.
At the center of the negotiations is a debate about health benefits and safety. According to the Teamsters, CN has expanded its use of remote-control locomotives in yards despite protests from the union. The union has also complained that CN has made it harder for employees to take time off, increasing the risk of fatigue-related incidents.
CN officials have rejected the union’s claims that safety is being compromised by the use of remote control locomotives.
“Safety is a core value at CN. Although the union has claimed that the strike was about safety, those statements do not reflect our discussions. For the safety concerns raised, we have proposed viable solutions because we want all employees to go home safely at the end of their shift,” Ruest writes.
