First a pandemic, then wildfires, then floods – now B.C.’s transportation network is being threatened by labour strife between Canadian Pacific Railway (TSX,NYSE:CP) and unionized workers that could have serious impacts on B.C. industries that rely on rail to move bulk commodities.
A dispute between CP Rail and the Teamster Canada Rail Conference could result in a work stoppage by railway workers March 20.
Earlier this week, CP Rail issued a 72-hour lockout notice that would affect 3,000 unionized railway workers, and the Teamsters responded with a strike notice.
Any suspension of rail services along CP’s B.C. rail lines could have a big impact on B.C. industries, especially those that produce bulk commodities that are not easily moved by truck, like pulp, coal and concentrates from mining.
The movement of agricultural products would also be affected, said Anita Huberman, president of the Surrey Board of Trade, who called on the federal government to implement back-to-work legislation, if a strike is not averted.
“One-third of Surrey’s land base is dedicated to agricultural production,”Huberman said. "The potential CP Rail labour strike will have a devastating impact on the entire agriculture value-chain that has already suffered through drought, wildfires, flooding, blockades, the pandemic, snowfall and more.”
Paper Excellence is one company that is now worried about the impacts of a cessation of rail service, particularly for its Skookumchuck pulp mill in the East Kootenays. The mill employs 280 unionized workers represented by the Public and Private Workers Union (PPWC).
“Global logistics have been incredibly challenging for the company during the pandemic and the additional impacts from devastating wildfires and flood events in BC last year made the situation ever more difficult,” Paper Excellence said in a news release.
“The CP Rail strike will further disrupt and impact Skookumchuck Pulp mill. PE respects the collective bargaining process. However, the company is concerned that a protracted disruption in rail service would impact the operation of our mill and employment in the rural communities that support our operation.”
“As over ninety percent of forest products made here in B.C. are shipped to customers across North America and around the world, our ability to move goods by rail is critical," said Alexa Young
vice president of government and public affairs for the Council of Forest Industries (COFI).
"Any disruption of this essential transportation network will adversely impact producers, workers, communities and customers, at a time when we’re already facing major issues across the supply chain."
Jock Finlayson, senior policy advisor for the Business Council of BC (BCBC), said Canadian exporters have already been hammered by a succession of supply chain interruptions. Domestic disruptions only compound the greater dirsuptions still being felt globally.
"The timing, in some ways, literally couldn't be worse to have one of our major railroads embroiled in a labour dispute," he said. "We respect the collective bargaining process, but there's also the national economic interests that have to be weighed."
The Teamsters have said they are committed to working with federal mediators to reach a negotiated settlement.
"The union is willing to remain at the bargaining table until the March 20th lockout deadline and beyond," the union said in a press release.
