Canada’s largest railway company says the ongoing workers’ strike at ports in British Columbia could increase costs and inflict economic damage that could take months to correct.
Canadian National Railway Co. said the labour disruption could result in increased shipping and consumer costs.
“A labour disruption can create significant impacts on shippers’ decisions to use Canada’s ports,” spokesperson Jonathan Abecassis said in a statement. “Given the integrated nature of ports and rail corridors, a work stoppage can create disruptions that take weeks or even months to correct.”
Other businesses and groups echoed similar sentiments. The Retail Council of Canada (RCC) said supply-chain specialists are working to find alternative transportation to ensure that goods reach stores. It also warned that any delays caused by the strike could increase consumer prices since shipping companies charge for the time goods are on ships, trains, trucks or in container terminals.
The retail council said many imported consumer goods enter Canada through B.C. ports, so any impact could be “North America-wide,” especially since companies will have to spend money to arrange alternative transportation methods.
The Canadian Federation of Independent Business (CFIB) said strike-related delays could prove to be more costly for small businesses and come when the economy is still reeling from high inflation.
“Some businesses may lose inventory if perishable goods are not unloaded and brought to market quickly, which would lead to considerable loss of revenue,” Jasmin Guénette, CFIB’s vice-president of national affairs, said in a statement. “Contracts are also at risk if goods are not delivered or received on time.”
Robin Guy, vice-president of government relations at the Canadian Chamber of Commerce, said the ports in Western Canada handle more than $800-million worth of cargo every day, ranging from agri-foods and potash to critical minerals, and construction materials to household necessities.
The Canadian Federation of Agriculture (CFA), a group that represents about 190,000 farm families, said that the longer the strike lasts, the worse the impacts will be for farmers as vessels delayed in port charge demurrage fees and other penalties that are passed down to the farmer.
“Farmers aren’t paid until their products reach export markets, and these ports are the only effective manner that many farmers can get their products to those markets,” said Matt Houston, a CFA spokesman.
Canada’s largest mining group, the Mining Association of Canada, said that the shutdown of the ports has put Canada’s reputation as a trusted producer of minerals in question.
Businesses have urged the government to provide incentives to ensure negotiations between the port’s workers and employers continue.
But statements by both the union and BCMEA signal there has been a breakdown in discussions.
The ILWU said the employers’ association was not willing to engage in any “meaningful way on substantive issues,” and urged it to get back to the table to “achieve a fair and reasonable” agreement.
“We hope the BCMEA is not using its vast resources and connections to vilify the union and scare the public with tales of economic disaster,” ILWU president Rob Ashton said in a statement on July 3. “We hope the association can rise to the occasion and engage in meaningful talks with the union and get a deal done.”
A joint statement last week by federal ministers Seamus O’Regan and Omar Alghabra urged the two parties to get back on the bargaining table.
“The best deals are made at the bargaining table,” the government said. “That is our focus here.”
