The great 2024 rail labour disruption is already underway

Canadians need to know that a looming, unprecedented service disruption for our country’s largest railways risks far-reaching effects for workers, businesses, commuters, and the economy, as well as our international reputation as a trusted trading partner. That’s exactly what’s at stake in ongoing labour negotiations between Canada’s two largest railways and the union representing their workers. And it comes at a time when we don't need more risks to public safety, the economy, or our standing as a reliable trading partner in North America and around the world. Bob Masterson is president and CEO of the Chemistry Industry Association of Canada. Photograph courtesy of Bob Masterson The three key players at the table are all rightly representing their respective groups' interests. Teamsters Canada Rail Conference (TCRC) is the union responsible for representing its membership, and has given notice of an intent to strike on Aug. 22. Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC)—considered Class I railways because their revenues exceeded $250-million in the past two years—represent the interests of their respective shareholders. Each railway has given notice of intent to lock out TCRC on Aug. 22 if no agreement is reached. Canada has had to cope with rail strikes, port strikes, and transportation infrastructure blockades on several occasions in recent years. However, the nation has never faced the prospect of losing service on both of its Class I railways simultaneously. The coming disruption would be devastating to an economy that is dependent on rail service to move boxcars—and actual cars—every day. Passenger and commuter rail services would also come to a swift halt across the entire nation. Such a work stoppage would also have a severe impact on chemistry. In fact, the disruption and economic harm has already begun. A recent decision by the Canadian Industrial Relations Board (CIRB) said that there are no public safety-critical products that need to be moved by rail during a broader disruption. In the wake of this ruling, one railway has already suspended service to facilities that produce key chemicals, such as chlorine and sulphuric acid. The other has given notice these same products will be unable to enter their rail system as of Aug. 15. Despite the CIRB decision, these products are absolutely essential for providing clean, safe drinking water in nearly every municipality in Canada. Producers of these key commodities, and their customers, are now shut in. With limited inventory on hand, municipalities and the intermediaries that produce chlorine derivatives for water treatment will see their inventories dwindle in the coming days. The government and Parliament need to understand there is no plan B for dealing with this looming disruption. Canada’s chemistry industry moves over 500 rail cars every day, 365 days a year. It would require well over 1,500 tanker trucks on the road to move the same goods. Unfortunately, there are not 1,500 spare trucks or 1,500 spare drivers. Inefficiencies and costs aside, key chemistries—including chlorine—are prohibited from being shipped on the road. Time will soon tell whether the CIRB erred in its decision concerning risks to the public. While of secondary importance to public safety, a total labour disruption for both national railways will also have significant North American economic impacts. More than 80 per cent of industrial chemistry shipments move by rail with a majority of that headed for the United States. These chemistries provide the critical materials for many of North America's economic sectors, including forestry, mining, energy, automotive and aerospace, and agri-food. A disruption in rail services could have a domino effect on these sectors further exacerbating the economic impact. This disruption would also lead to consequences for Canada's reputation as a reliable trading partner, as noted in the CIRB decision. Elected officials in Washington, D.C., have publicly advised Ottawa of their concerns such a widespread rail disruption would have on the American economy. The federal government and Parliament are the only players with the authorities and mandate to protect the economy, to safeguard our most-important trading relations, and to ensure public safety in the face of the looming disruption—a disruption already underway for chemical producers and their key customers in Canadian municipalities. The time to act is now. We can’t afford to wait until after Aug. 22. Signals must be delivered that a complete shutdown of Canada’s transportation infrastructure is unacceptable. Parliament also must be prepared to act quickly to order the parties to return to work and to the negotiating table, in order to protect all Canadians—including workers directly affected by the disruption—as well as the Canadian economy. Bob Masterson is president and CEO of the Chemistry Industry Association of Canada. The Hill Times

The great 2024 rail labour disruption is already underway

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The great 2024 rail labour disruption is already underway

One railway has already suspended service to facilities that produce key chemicals like chlorine and sulphuric acid. These products are essential for providing clean, safe drinking water in nearly every municipality in Canada.

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