The Associated Equipment Distributors (AED) are urging Canada’s federal government to find a quick remedy to a potential labour strike affecting the nation’s railway network.
The Canadian National (CN) and Canadian Pacific (CP) are already experiencing a phased shutdown of their rail networks.
Both rail companies will see rail service stopped at 12:01 a.m. on Thursday unless a deal can be reached with the union representing workers.
On August 19, AED weighed-in with the Canadian government regarding the potential strike.
In a letter to Prime Minister Justin Trudeau, Transportation Minister Pablo Rodriguez and Labour Minister Steven MacKinnon, AED President and CEO Brian P. McGuire cautions about the impact a railway work disruption will have on North American trade and commerce and urges prompt action at the cabinet level to prevent economic damage.
“A disruption in our North American railway system would have immediate effects on thousands of businesses across Canada,” McGuire said in the letter. “All Canadian ports, logistics and warehouse operators and suppliers would be impacted.”
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Canada’s railways move about $380 billion worth of goods annually, equalling more than $1 billion daily.
“On behalf of our members and the industries we serve, I urge you to protect both the well-being of Canadians and Americans by ensuring that our national railway system remains uninterrupted,” McGuire said.
“Canada’s international reputation and trade relations are at risk.”
AED is the North American trade association representing companies that sell, rent, service, and manufacture equipment used in agriculture, construction, forestry, mining, power generation and industrial applications.
Ottawa has also been urged to act in a joint statement released by the Canadian Chamber of Commerce, Business Council of Canada, Canadian Federation of Independent Business and Canadian Manufacturers and Exporters.
In that statement, the associations suggest the dispute is referred to the Canada Industrial Relations Board for binding arbitration to prohibit a strike, lockout or end any ongoing stoppage pending a resolution.
The business groups also suggest back-to-work legislation as an alternative.
