Canadian Manufacturers & Exporters (CME) is calling for urgent action from federal lawmakers following a Canada Industrial Relations Board (CIRB) decision that could lead to a nationwide rail strike as early as August 22.
The CIRB ruling, announced Friday, clears the way for a potential work stoppage that CME warns would have a “catastrophic impact” on Canadian manufacturers and their employees. Dennis Darby, President and CEO of CME, emphasized the urgency of the situation in a statement, urging the House of Commons Standing Committee on Transportation to hold emergency hearings next week.
“A national rail stoppage of any length will have severe consequences for Canadian manufacturers and their workers,” Darby said. He stressed the importance of the federal government taking “immediate and decisive action” to prevent the strike, which could disrupt supply chains and deal a significant blow to the economy.
The call for emergency hearings comes during a 10-day cooling-off period mandated by the CIRB, which provides a narrow window for lawmakers to intervene. Darby highlighted the need for Parliament to hear directly from employers about the potential supply chain chaos and the broader economic fallout that a nationwide rail stoppage could trigger.
A recent CME survey of 226 manufacturers paints a bleak picture of the potential impact. According to the survey:
- 66% of respondents said a strike would have severe consequences on their operations.
- 92% expect delivery delays, 76% foresee increased costs, 57% anticipate reduced sales, and 49% believe their competitiveness would be compromised.
- Manufacturers estimate an average financial hit of $275,000 for each day of a rail stoppage, factoring in both revenue losses and increased expenses.
Additionally, 77% of manufacturers believe that labour stoppages have negatively influenced foreign investors’ views of Canada. The survey also found that 88% of respondents support federal intervention to prevent strikes at critical infrastructure sites, including railways.
CME, which represents 2,500 companies across Canada, has a long history of advocating for the interests of manufacturers. The organization, which includes many small and medium-sized enterprises, accounts for an estimated 82% of the country’s total manufacturing production and 90% of its exports.