Another 1,400 Canadian Pacific Railway Ltd. employees could be temporarily laid off if a strike is not resolved next week.
The number is an addition to the 2,000 workers who were laid off on Wednesday after 4,800 locomotive engineers, conductors and traffic controllers — represented by the Teamsters Canada Rail Conference — walked off the job.
“CPR is still willing to continue the negotiations and bring in binding arbitration, which would resume rail traffic but the union has not agreed to this at the present moment,” said CPR regional media liaison Kevin Hrysak.
“We are definitely disappointed that the union took this measure and decided to shut down CPR’s freight operations. It has a dramatic impact on business and Canada’s economy,” he added.
On Wednesday, CPR suspended all freight shipments — affecting numerous industries such as oil, grain, coal, lumber and the automotive sector, which rely on export by rail.
Hrysak said CPR was meeting with the Teamsters union again on Thursday and is committed to meeting every day until matters are resolved.
“We want to come to a collective agreement that is suitable to both sides without any government intervention.
“But if the union doesn’t agree and we don’t come to a deal, then definitely, we would urge the government to take action,” Hrysak said.
Labour Minister Lisa Raitt said she would introduce back-to-work legislation when Parliament sits on Monday if a resolution doesn’t come to light. The minister said a prolonged CPR strike could cost the Canadian economy an estimated $540 million per week.
“There are a lot of businesses that are going to be affected by this particular work stoppage,” Hrysak said. “And if this goes on it is going to have even more of an impact, like plants shutting down, curtailing operations, job loss and far beyond what the minister is saying.”
Garrett Scott, who is a part of the Motor Dealer’s Association of Alberta and the general manager of three Scottville Group dealerships, says the strike has already impacted the auto sector.
He says one or two vehicle orders are either sitting on a train or are in CPR’s holding yards.
“And those are not going to be released until everything is resolved,” Scott said.
“Unfortunately there is not a whole lot the dealer can do but it wrecks our customer satisfaction.
“You can explain it to customers, that there is a rail strike, but to most people that doesn’t really matter.”
Scott said he is hopeful that back-to-work legislation forces CPR to resume freight traffic.
“If not, we will suffer with inventory levels,” he said.
Many companies are looking to the Canadian National Railway Co. as they try and draw up contingency plans.
The Suncor Energy Inc. Ferrier gas plant, west of Rocky Mountain House, utilizes rail to send propane to the U.S., said employee Walter Greening. The plant is breathing a collective sigh of relief as most of their product is moved with CN — the larger of the two railways in the country.
“CN’s primary focus right now is to work with customers and to ensure its service levels and its networks remain fluid,” said CN spokesperson Mark Hallman.
“We are working with CN customers as well as other stakeholders to identify potential routing options for them as result of the strike,” he said.
jjones@www.reddeeradvocate.com