It’s not too late to course correct on what ails Canada’s transportation sector

They say Canada has only two seasons: winter and construction. Lately, though, it feels like we’re down to just one: strike season. The recent wave of labour issues—having extended into the fall with repeated strikes and an indefinite work stoppage at the Port of Montreal—is not the cause of Canada’s supply chain challenges. Rather, it’s a symptom of a government that has taken businesses and trade for granted. Canada is a trading nation, and all Canadians benefit from the wealth created by exporting our natural resources and manufactured goods. When Canadian businesses can’t get their goods to market reliably, not only is our international trade reputation harmed, but so is the quality of life of people across the country. With every disruption to our supply chains, it becomes increasingly clear that government policy isn’t supporting the people who rely on well-functioning Canadian businesses for their livelihoods. The data backs this up. There has been a threefold increase in labour disruptions from 2022 to 2024. In fact, a Canadian Chamber of Commerce Business Data Lab analysis of Employment and Social Development Canada data revealed that 2023 saw the most days lost to labour disputes since 1986. It is a disturbing trend, and recent government legislation will only make it worse. Randall Zalazar is the director of government relations at the Canadian Chamber of Commerce. Photograph courtesy of Randall Zalazar The passage of Bill C-58—anti-replacement worker legislation—upset the long-established balance in labour relations that had led to relative stability since the late 1980s. Despite evidence that shows that anti-replacement worker legislation leads to more and longer strikes, the government moved forward with a one-sided approach, leaving businesses with fewer options and often unable to even “keep the lights on” for the communities that count on them. The recent rail stoppages that risked leaving our cities and towns without critical chlorine are only one example of what’s at stake. And it’s not only our communities we compromise when supply chains keep getting blocked; it’s also the countless small businesses that employ millions of Canadians, boost our economy, and fund essential public services. Today’s reality: strikes abound, and Canadians are becoming more and more aware of how vulnerable our supply chains are that we count on for our life essentials—whether that’s food, fuel, or everyday goods. The veil will be lifted once again just in time for the holiday season, as the largest container port in Eastern Canada is rocked by another strike—this one of indefinite duration. Instead of being shared with loved ones, gifts will sit in distribution centres, leaving families disappointed and further harming businesses that rely on the season. Policymakers must look beyond short-term politics and strive for a balance to ensure a robust, responsive economy that serves everyone. Listening to the concerns of employers and organized labour is one part of this, but so, too, is making the necessary investments in the infrastructure that supports our supply chains so that we don’t bottleneck our economy. While Canadians take pride in our nation’s resilience and adaptability, many aspects of our transportation infrastructure are underfunded, outdated, or unco-ordinated. Since 2020, Canada has dropped from eighth to 16th in infrastructure rankings in the IMD World Competitiveness Ranking, putting us far behind the United States—our largest trading partner—which ranks seventh. A 2021 report by the European Court of Auditors—which reviewed the management of major transport infrastructure projects in Australia, Canada, the European Union, Switzerland, and the U.S.—found that Canada alone lacks a consistent, institutionalized approach to long-term co-ordination and planning. This is no minor undertaking. Our vast geography, low population density, and remote northern communities present transportation challenges not faced by most other countries. Taken together, we have a clearer picture of what ails our transportation sector. Although some of these problems were self-inflicted, it’s never too late to course correct. First, the government should repeal Bill C-58, and instead give itself the tools to compel binding arbitration when a situation requires it. Sometimes when relationships or discussions break down, only a neutral third party can decide what is reasonable and fair. Our economy cannot grind to a halt over a single labour dispute. Next, thoughtful long-term infrastructure investments in shovel-ready projects—guided by a Canada Trade Infrastructure Plan—would enhance the reliability and efficiency of transportation across all modes for both industry and millions of travellers. Finally, an all-of-government commitment to eliminating barriers to trade, particularly regulatory burden and overlap, would allow supply chain participants to deliver products to people more quickly and affordably. As governments and businesses worldwide seek stability and dependable trading partners, Canada has a unique opportunity to rise on the global stage. However, if our government continues to overlook the fundamental contribution of our businesses and trade, our international reputation will erode, our standard of living will decline, and investors will look elsewhere. Canadians cannot afford that—especially when we have the natural resources and expertise our global partners need. Together, government and industry can find the solutions necessary to position Canada’s transportation sector as a global model of excellence. Randall Zalazar is the director of government relations at the Canadian Chamber of Commerce. The Hill Times

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It’s not too late to course correct on what ails Canada’s transportation sector

Repealing the anti-replacement worker law and thoughtful long-term infrastructure investments are just two steps the feds can take to make meaningful changes.

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