Industry groups call on feds to stop potential CP Rail work stoppage

Canadian business organizations are calling on Ottawa to prevent a potential work stoppage at CP Rail, which could further hamper companies recovering from COVID-19 restrictions and supply chain problems.

Canadian business organizations are calling on Ottawa to prevent a potential work stoppage at Canadian Pacific Railway Ltd., which could further hamper companies recovering from COVID-19 restrictions and supply chain problems.

Roughly 45 industry groups said Thursday that any disruption would hinder Canada's freight capacity and hurt the broader economy as it grapples with inflation, product shortages, rising fuel costs and the Russian invasion of Ukraine.

"Any disruption would further cripple Canada’s freight capacity and have a profound impact on not only rail shippers, but all shippers, including trucking and air, throughout the broader Canadian economy," the groups said in a statement.

"It would do irrevocable damage to Canadian supply chains that would extend beyond our borders and harm our reputation as a reliable partner in international trade."

The groups behind the statement included the Retail Council of Canada, the Canadian Chamber of Commerce, the Canadian Manufacturers and Exporters and the Business Council of Canada.

Their concerns come a day after Calgary-based CP Rail issued a 72-hour notice to the Teamsters Canada Rail Conference of its plan to lock out almost 3,000 employees on Sunday, if the union and the company are unable to come to a negotiated settlement or agree to binding arbitration.