Canada rail strike 2024: What the shutdown means for transportation, oil and food

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The deadline passed at midnight Wednesday. With no contract agreement or binding arbitration in place, 9,300 rail workers, including conductors, yard crews and engineers, are now locked out and on strike. The shutdown of two transcontinental rail lines has led to picket lines and finger-pointing across the country. The National Post breaks down what this means for ordinary Canadians.

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Which services are shut down?

Two freight railroads were shut down, Canadian Pacific Kansas City (CPKC) and Canadian National. The two railroads operate in Canada and the United States, with CPKC also operating in Mexico. In Canada, they move about $1 billion in freight every day. Other services, such as commuter transit, also use their tracks.

So what about passenger trains?

Via Rail, which says service in northern Ontario may be disrupted but there will be no major disruptions to operations, has not yet made any comment on how the strike and work stoppage will affect its intercity trains. Instead, the company has been asking people who have raised the issue on social media to contact them via private direct messaging.

In the Toronto area, GO Transit reminds passengers Its commuter train service may be busier than usual, with service on part of the rail network between Hamilton and Toronto suspended.

In Vancouver and British Columbia’s Lower Mainland, West Coast Express service has been suspended and backup buses are being put into operation.

Three commuter lines operated by Montreal’s Exo have been closed as a contingency plan begins Monday, with commuters encouraged to use municipal bus services in the meantime.

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Can the oil region continue to export?

Canada exports an average of more than 100,000 barrels of crude oil per day, most of which goes through the Alberta city of Lloydminster, which is on the Saskatchewan border and is home to a large refinery. Mayor Gerald Aalbers told the National Post The city’s residents “hope for the best but prepare for the worst.”

So what about the farmers?

The Canadian Grain Growers Association estimates that if a strike occurs during harvest season, farmers in Western Canada could lose up to $50 million a day.

A large amount of grain, including about 80% of wheat, is transported to railroad elevators for temporary storage before being shipped to market. Since there are no railroad cars, these cars will fill up. Some grain can be stored on local farms and not sold; some grain can be transported by truck if the location is right, but it may lose value due to the limited transportation distance.

“The economic impact of this shutdown will extend far beyond the farm,” said Andre Harp, president of the Canadian Grain Growers Association.

What other services may be disrupted?

Take air travel, for example. An estimated half of the jet fuel used at Toronto Pearson International Airport is transported by rail, and any disruption to supply would have a knock-on effect on flights. However, Toronto Pearson clarified on Thursday that most of its fuel supplies come from pipelines and trucks, and with its on-site storage capabilities, it will not be seriously affected for weeks or even months.

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Can groceries still be delivered here, such as fresh produce from the southern United States and Mexico?

Industry observers say the impact of the rail strike on grocery stores is likely to be felt first and most profoundly in Western and Atlantic Canada.

Many large retailers have already put contingency plans in place, but smaller businesses will begin to see sales losses. One recent estimate puts the food, health and consumer goods industries at risk of losing sales at $1. Western and Atlantic Canada earned $40 million per day in just 10 days Railway services were suspended.

What are the prospects?

Labour Minister Steven MacKinnon, who recently replaced Seamus O’Regan after he retired from politics, is said to be negotiating throughout the day in an effort to reach a resolution. Earlier, MacKinnon rejected CN’s request for binding arbitration over contract talks, saying negotiations would lead to a better solution. Montreal and Calgary are also set to resume contract talks.

Perrin Beatty, President of the Canadian Chamber of Commerce Tells the Post that the government should have stopped the strike before it startedBut now is the time to intervene to get the economy back on track.

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Canadian Prime Minister Justin Trudeau said: “We are taking this very seriously. The minister has been directly involved. Obviously, we are not taking this lightly, as Canadians across the country are concerned. We will be announcing more soon about the steps we are taking to ensure that we get to the right solution for the economy quickly.”

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