CN Rail Sarnia (Photo by Melanie Irwin)CN Rail Sarnia (Photo by Melanie Irwin)
Chatham

Prolonged rail strike will lead to supply shortages, price hikes: Chamber

The Chatham-Kent Chamber of Commerce has joined dozens of groups calling on the federal government to "immediately intervene" and "do everything necessary" to avoid a possible rail strike.

The CK Chamber said it is closely monitoring the potential rail strike and its implications for the Chatham-Kent community and the local economy.

“As a region serviced by the trunk lines of two major railways -- the Canadian National Railway (CN) and Canadian Pacific Railway (CPR) -- we recognize the critical role that rail transportation plays in our local economy. This is a critical time of year as the agricultural sector is in full swing with expectations of shipping perishable goods to destinations across Canada and abroad," said Chatham-Kent Chamber of Commerce Board of Directors Chair B.J. Griffiths in a statement.

Griffiths noted railroads are a vital link in our supply chain, adding CN connects Chatham-Kent to ports on the Atlantic, Pacific, and Gulf coasts across Canada, the U.S., and Mexico.

The CK Camber added CPR serves major Canadian ports and cities, extending from Montreal to Vancouver and key centers in the U.S. Midwest and Northeast.

The local Chamber said a rail strike would disrupt freight transportation, affecting industries such as manufacturing, agriculture, and logistics. Chamber officials added that estimates suggest railroads handle approximately 40 per cent of Canada's freight annually, making their smooth operation "crucial" to local businesses.

"The Chatham-Kent Chamber of Commerce urges all stakeholders -- government, labor unions, and rail operators -- to engage in constructive dialogue," said Chatham-Kent Chamber of Commerce President & CEO Rory Ring. "We emphasize the need for a fair resolution that balances workers’ rights with the economic well-being of our community. Our businesses rely on efficient rail service, and any disruption could have far-reaching consequences. We encourage all parties to work collaboratively to prevent a prolonged strike."

The Chatham-Kent Chamber of Commerce joins forces with the Canadian Chamber of Commerce and over 125 associations and Chambers across Canada asking the Canadian Government to immediately intervene and do everything necessary to avert a disruption in Canada’s Class I railways.

In a letter addressed to Justin Trudeau, Prime Minister of Canada, Steven MacKinnon, Minister of Labour, and Pablo Rodriguez, Minister of Transport, multiple Canadian sectors and businesses stress that work stoppages at both major railways will leave Canadians with access to fewer goods and products, driving up prices and making affordability worse.

A failure to act swiftly will also put the livelihoods of millions of workers in jeopardy, the Canadian Chamber of Commerce wrote.

"A disruption to our railway system will have an immediate impact on thousands of businesses from coast to coast and to commuters in several major urban centres and those travelling to those centres for business or vacation," the Chamber wrote. "A prolonged stoppage will quickly lead to shortages of supplies for numerous industries, forcing businesses to suspend their operations and furlough their employees. Factoring in the millions of Canadian jobs that would be impacted, the magnitude of the disruption is daunting."

Chamber officials also said Canada's international reputation and relationship with its trading partners is also at stake.

They noted Canada’s railways transport $380 billion worth of goods annually (more than $1 billion each day), accounting for half of the country’s exports and emphasized that a prolonged railway strike will also "surely weaken Canada’s negotiating position" in advance of the renewal of the Canada-United States-Mexico Agreement in 2026.

"A loss of confidence from our most important trading partner would take years to repair," the Canadian Chamber of Commerce wrote.

CN has issued a lockout notice to Teamsters Canada Rail Conference formally advising the union of its intention to lockout union-represented employees on Thursday unless an agreement or binding arbitration is reached before then.

The Chatham-Kent Chamber of Commerce serves over 350 members and businesses in the community.

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