Letter to The Hon. Minister MacKinnon on the Rail Dispute

The Honourable Steven MacKinnon, P.C., M.P., Minister of Labour and Seniors

Dear Minister MacKinnon,

On behalf of the Calgary Chamber of Commerce and the Calgary business community, it is my pleasure to extend our congratulations to you on your appointment as Minister of Labour and Seniors. As you move forward in your new role, the Chamber is ready to work with you and your team as you strive to support Canada’s economic growth, implementing policies that strengthen our business community and workforce.

In light of the current situation involving the Canada’s Class I railways, we are also writing to urge to you to immediately intervene – doing everything necessary to avert a disruption on these critical supply chains – as a failure to do so will put the livelihoods of millions of workers across the nation in jeopardy. Any potential to disruption to rail service will have an immediate and devastating impact on thousands of businesses across Canada, and commuters in several major urban centers. Canadian ports, logistics and warehouse operators and suppliers will be immediately affected, while a prolonged lockout will lead to supply shortages for numerous industries – and consumers – forcing businesses to suspend operations and furlough employees. It took six weeks for Canada’s supply chain to rebalance following the two-week strike at the Vancouver Port in 2023 and the current strike threat looms close to harvest; 95 per cent of Canada’s grain crops is transported by rail.

Just as important is the fact our relationship and reputation as a reliable trading partner with key jurisdictions would be severely compromised by any potential labour disruption. Canada’s railways transport over $380 billion in goods annually, or more than $1 billion per day, accounting for more than half of our country’s exports. Beyond the direct economic impact of a disruption, this would significantly weaken Canada’s negotiating position in advance of the renewal of the Canada-United States-Mexico Agreement in 2026. A loss in confidence from key trading partners such as the United States would take years to repair and have significant – and long-lasting - economic impacts. A loss in confidence from key trading partners such as the United States would take years to repair and have significant – and long-lasting – economic impacts.

The uncertainty resulting from this looming disruption has already forced businesses across the country to adjust their operations, choosing to delay shipments or seek pricey alternative supply arrangements until such time as the disruption is resolved. There are no feasible alternatives to a rail disruption for many businesses supply chains – and there is already a trucking shortage – which means companies may have to suspend operations and furlough employees if a disruption occurs. We are asking that you safeguard the well-being of Canadian businesses, workers and families as well as our international reputation as a reliable trading partner by ensuring that negotiations are not stalled and a labour disruption is adverted.

Yours sincerely,

Deborah Yedlin
President & CEO
Calgary Chamber of Commerce  

ABOUT THE CALGARY CHAMBER OF COMMERCE 

The Calgary Chamber of Commerce exists to help businesses reach their potential. As the convenor and catalyst for a vibrant, inclusive and prosperous business community, the Chamber works to build strength and resilience among its members and position Calgary as a magnet for talent, diversification and opportunity. As an independent, non-profit, non-partisan organization founded in 1891, we build on our history to serve and advocate for businesses of all sizes, in all sectors across the city.