Industry calls for ‘permanent’ supply chain solution in wake of CP Rail work stoppage

Enterprise teams advocating for rail to be declared an important service within the wake of this week’s non permanent work stoppage at Canadian Pacific Railway Ltd. say a “everlasting” answer is required to ease this nation’s provide chain woes.

In an interview Wednesday, Fertilizer Canada president and chief govt Karen Proud mentioned that since 2019, her business has handled strikes at Canadian Nationwide Railway Co. and the Port of Montreal, along with the latest labour dispute at CP.

That’s on prime of different provide chain disruptions which have resulted from COVID-19, pure disasters like wildfires and flooding and up to date border blockades and protests.

“We each few years appear to get caught in the identical scenario. Generally a few instances a yr,” she mentioned. “Within the long-term, we’re actually hoping that the federal government will take a look at this.”

Whereas CP staff are again at work after the Teamsters Canada Rail Convention and the Calgary-based firm agreed Tuesday to ultimate and binding arbitration to finish a 48-hour work stoppage, Proud mentioned many enterprise teams are jittery concerning the prospect of future labour-related provide chain disruptions — particularly as numerous necessary collective agreements, together with contracts between CP rival Canadian Nationwide Railway Co. and its staff, are set to run out later this yr.

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Canada’s labour minister says operations at CP Rail has resumed, will proceed throughout arbitration interval

She mentioned whereas among the points which have plagued Canada’s provide chain previously two years have been past anybody’s management, “man-made points” like labour disputes might be addressed.

“I believe rail is an important service is a viable answer,” Proud mentioned. “The query is whether or not the federal government is keen to go there.”

In an interview earlier this week, federal Labour Minister Seamus O’Regan mentioned that when the mud from this current negotiation and work stoppage at CP settles, it could be time for the federal government to take a look at discovering a option to convey extra certainty to future contract talks.

However he mentioned he’s not bullish on the thought of creating rail an important service as a result of that takes away the rights of staff to cut price.

The Western Grain Elevator Affiliation, which represents the nation’s grain shippers, mentioned in a current assertion that railways are the “economic system’s lifeblood” and should be handled as so.

“We can’t afford to face one other large disruption to our economic system the place on a regular basis Canadians pays the value,” the group mentioned in its assertion.

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Work stoppage at CP Rail involves an finish

Whereas there’s little doubt that rail is an important piece of the Canadian economic system, mentioned College of Manitoba provide chain administration professional Barry Prentice, for the federal authorities to designate railworkers as important and take away their proper to strike would characterize a “slippery slope.”

“What concerning the folks working the grain elevators, as a result of they’re additionally key on this provide chain? What concerning the grain inspectors?” Prentice mentioned. “There’s additionally containers, the truckers who deal with the containers off the docks. The place do you cease with this factor?”

Nonetheless, Prentice agreed that the federal authorities must take motion, including there’s a very actual threat of labour-related disruptions intensifying together with the speed of inflation as staff search wage will increase that sustain with the spiralling price of dwelling.

“What (governments) can do is give folks some safety that they’re not going to let inflation get out of hand. As a result of in the event that they ship the incorrect message on that, then we might be assured that there’s going to be extra disruptions,” he mentioned.

Michael Gullo, vice-president with the Enterprise Council of Canada, declined to go as far as to say that rail needs to be designated an important service. However he mentioned the variety of provide chain associated disruptions that Canadian companies have handled lately are a risk to this nation’s fame as buying and selling companion.

“There actually must be a powerful affirmation from our governments that our commerce corridors are safe and that Canada’s a dependable funding companion,” Gullo mentioned. “A part of that will imply infrastructure funding, however we additionally must suppose lengthy and arduous about how we reply to disruptions. … Frankly, we will’t anticipate a nationwide emergency to occur earlier than we act.”