(Ottawa) Quebec manufacturing companies that depend on rail transport to export their goods fear the financial consequences of a strike that could force CN and CPKC to shut down.
Nearly two-thirds (62%) of them say that a strike that would paralyze rail transport in the country would have “serious and significant” consequences on their activities, reveals a recent survey conducted by Manufacturiers et Exportateurs du Québec (MEQ) among 92 companies.
In total, it is estimated that goods would not move on Canadian rails at $106 million per day if an agreement cannot be reached. More specifically, it is estimated that each day of strike would cause a financial impact of $305,000 per company. This amount represents the anticipated drop in revenues and increase in expenses to find an alternative to rail transportation.
“The level of concern is very, very high for those who rely on rail transport at this time. Both companies could be affected at the same time as well. And there are not many alternative options,” said Véronique Proulx, President and CEO of MEQ.
The specter of a strike has hovered over rail transport in the country for several weeks. Last month, the approximately 9,300 workers at the country’s two largest railway companies, Canadian National (CN) and Canadian Pacific Kansas City (CPKC), voted 98% in favor of strike action.
For the moment, no work stoppage can occur until the Canada Industrial Relations Board has ruled on the definition of “essential services” in this matter. “Right now, we’re in a bit of a waiting mode,” Christopher Monette, director of public affairs for Teamsters Canada, said Monday.
He specified that three days of negotiations will take place in Toronto between the union and CN. No date has yet been set for the resumption of talks with the CPKC. “But that doesn’t mean there’s no communication,” he said.
Negotiations for the renewal of collective agreements for train conductors, engineers and marshaling yard workers have stalled for several months. The main stumbling block in the negotiations concerns working hours. The union says both railroads are seeking to eliminate key rest provisions from employment contracts — a move that could increase crew fatigue and endanger public safety, the union says.
