Business groups call on Liberals to end rail lockout immediately

OTTAWA — Business groups and provincial premiers are calling on the Liberal government to end a labour dispute that has brought the country’s rail lines to a grinding halt.

CN and CPKC, the country’s biggest freight rail companies, locked out their workers first thing Thursday morning after failing to come to an agreement with the Teamsters Rail Conference, who represent more than 9,000 workers.

The two companies have never seen a labour dispute at the same time before and the shutdown prevents an estimated $1 billion in trade from moving every day.

Perrin Beatty, president of the Canadian Chamber of Commerce, said the government should have stopped the work stoppage before it started, but should now intervene to get the economy back on track.

“The Government of Canada had the opportunity to prevent an unprecedented shutdown of our Canadian freight rail network and some commuter services in major cities. Unfortunately, it did not act,” he said in a statement. “Canadians are already contending with a high cost of living. They need to see decisive leadership from government that puts their families and livelihoods first.”

Beatty called on Labour Minister Steven MacKinnon to use binding arbitration to end the dispute. The minister rejected a call for arbitration last week when CN asked him to impose it. His office said Thursday he was in meetings all day to resolve the matter.

On Wednesday, before the stoppage began, Prime Minister Justin Trudeau said a negotiated agreement was the best way to resolve the crisis.

“It is in the best interest of both sides to continue doing the hard work at the table,” he said. “Millions of Canadians, of workers, of farmers, of businesses right across the country are counting on both sides to do the work and get to a resolution.”

The Grain Growers of Canada said the dispute will cost farmers $43 million a day at first, rising to $50 million a day if it extends into a second week. They warned it will cost consumers as well.

“The economic impact of this stoppage will be felt far beyond the farm gate,” said Andre Harpe, the group’s chair. “Consumers could see higher prices and shortages of food products that rely on grain, while farmers are left grappling with reduced income.”

According to Canada’s Energy Regulator, 89,000 barrels per day of crude oil moved by rail in June. Airlines have warned that a significant amount of jet fuel is moved by train and other business groups have warned of empty shelves if the strike continues.

Late Wednesday, Alberta Premier Danielle Smith called on the government to use the tools it has.

“The federal government must fix this crisis now, and they have the tools to do so,” she said on X. Alberta’s government calls on the Minister to order binding arbitration to get both sides back to the table to reach an agreement while avoiding a work stoppage.

Saskatchewan Premier Scott Moe made a similar call.

“Saskatchewan is in full support of the federal government using any tools necessary, including binding arbitration,” he said on social media.

More to come … 

National Post [email protected]

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our politics newsletter, First Reading, here.