Possible CP Rail strike could spell disaster for some small businesses: CFIB

The Canadian Federation of Independent Business is calling on Ottawa to intervene in the negotiations between CP Rail and its workers’ union, saying a strike or lockout could be the final nail in the coffin for many small businesses already struggling to recover from the pandemic.

CP Rail says negotiations with the union have fallen apart and employees will be locked out just after midnight on Sunday morning if no agreement can be reached.

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CFIB says almost 90 per cent of Canadian small businesses are already struggling with supply challenges, with many having to wait more than a month to receive shipments.

“This is the last thing small businesses need at the moment and it’s the last thing that the Canadian economy needs,” said Jasmin Guenette, CFIB VP of National Affairs. “Retail, manufacturing, and construction businesses are being some of the hardest hit sector by supply chain challenges.”

Truckers won’t be able to keep up with increased demand

Earlier this week, the BC Trucking Association said the land freight hauling industry wouldn’t be able to transport more goods and fill the supply chain gap in the even of a work stoppage.

“There’s just not enough vehicles to move that level of freight where it needs to go,” CEO Dave Earle told CityNews. “When you think about the container traffic that comes to the Port of Vancouver, the majority of it never sees a truck…Rail really fulfills a hugely important movement of a lot of goods into distribution centers inland in North America.”

In addition, the industry is already struggling to find drivers and equipment. Canada’s trucking industry lost about 10 per cent of its workforce over the past two years as people retired and left, Earle said.

Recent truck convoy protests have not significantly impacted the supply chain, according to Earle.

CP Rail said it tabled an offer Tuesday to address 26 outstanding issues, including the union’s key issues of wages, benefits, and pensions through final and binding arbitration.

The company said the union rejected the offer and continues to table additional demands.

Workers recently voted 96.7 per cent in favour of strike action.

Teamsters’ spokesperson Dave Fulton said the union is committed to working with federal mediators and reaching a negotiated settlement. He said the union is willing to remain at the bargaining table until the March 20 lockout deadline and beyond.

The union represents about 3,000 locomotive engineers, conductors, train and yard workers across Canada.