Canadian manufacturers call on all parties to avoid a labor disruption at CP Rail

The Canadian Manufacturing Coalition, a group representing Canada’s professional manufacturing associations, listed below, issued the following statement on the impending labor disruption at CP Rail:

“Canadian manufacturers are urging the Canadian Pacific Railway and the Teamsters Canada Rail Conference to reach an immediate agreement and avoid labor disruptions that would seriously harm Canadian manufacturing and export operations.

Canadian manufacturers are among the largest users of rail transportation services. CP Rail is a critical link in manufacturing supply chains, and it’s how we get our goods to North American markets. Collectively, our industry employs over 1.7 million Canadians, represents over 10% of our GDP and accounts for two-thirds of Canada’s value-added exports.

Given the many disruptions over the past year and the ongoing supply chain crisis, our industry cannot afford another major disruption to the transportation network. In a recent survey conducted by Canadian Manufacturers & Exporters (CME), 9 out of 10 Canadian manufacturers are experiencing supply chain issues, and more than 60% rate the impact of these disruptions as major or severe. Additionally, Canadian manufacturers surveyed say they have lost approximately $10.5 billion in sales due to supply chain disruptions and are now experiencing increased costs of nearly $1 billion.

Added to our concern is that a work stoppage at CP Rail will deal another blow to Canada’s reputation as a good place to do business and as a reliable supply chain partner. A strike would have a serious impact on our global competitiveness, exacerbate supply chain issues and scare away investment in Canadian manufacturing.

This situation must be avoided at all costs, and we implore both parties to reach an agreement now. Failing that, the federal government must signal its intention to intervene immediately to avoid a work stoppage, a further fracturing of supply chains and another blow to Canadian manufacturing. »

Michael GraydonMichael Graydon, CEO of FHCP

Members of the Canadian Manufacturing Coalition include Canadian Manufacturers & Exporters (CME) and Food, Health & Consumer Products of Canada (PFHC). Michael Graydon, CEO of FHCP, made a separate statement on critical supply chains that continue to weaken, saying “Canada must act.”