Rail strike would mean higher costs, lower sales for manufacturers, survey finds

Manufacturers say a rail strike would raise expenses, lower sales and delay shipments, as industry groups grapple with looming uncertainty around a key transport link.

A new survey from the Canadian Manufacturers & Exporters finds two-thirds of respondents say the impact of a work stoppage would be significant or severe.

The results of the poll, which questioned 225 companies over the last three weeks, come in a letter to cabinet urging the federal government to take action to prevent a strike or lockout.

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.

The government, in an apparent move to delay a potential strike, stepped in by asking the country's labour board to review whether a work stoppage would jeopardize Canadians' health and safety, with a decision unlikely before mid-July, according to one railway.

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 a job action at rail lines that haul more than $28 billion worth of cargo each year.

This report by The Canadian Press was first published June 3, 2024.

The Canadian Press