Some Western Canada businesses prepping for railway shutdown

Canada’s railway network could come to a grinding halt this week with workers potentially off the job Thursday for both major companies.

The union representing Canadian Pacific Kansas City (CPKC) has until Thursday at 12 a.m. ET to meet an agreement before a strike. CN Rail also intends to lock its workers out at the same time unless an agreement is achieved.

Both the strike and lock out would impact more than 9,000 workers.

In the meantime, the construction industry is doing its best to prepare amid Western Canada’s booming housing demand.

“If this comes to pass with no intervention there will not be enough transport trucks on the road to get the material in the hands of qualified trade people to get the homes built,” says Greg Holunga, president of Shoemaker Drywall Supplies.

Shoemaker is one of western Canada’s largest suppliers for drywall, roofing and other home building needs. It’s both an importer and exporter of construction supplies.

Holunga says a rail stoppage would have a significant impact on the housing industry and public infrastructure.

“We are servicing multiple residential family sites, commercial sites, but it is also important to mention we are apart of seven new hospitals being built,” he says.

“Those are hospitals that need to get built and stay on schedule.”

The squeeze on materials will not only lead to delays, but most likely higher prices.

“Just like COVID, we will see an immediate escalation in prices which will ultimately impact the consumer,” says Karen Proud, CEO of Fertilizer Canada, who adds the agriculture sector is also at risk.

According to Proud, a lack of fertilizer shipments could have a major impact on the food supply.

“Ultimately it does come down to a food security issue, fertilizer helps grow the food,” she says. “We need to feed the population if we don’t have fertilizer in time for our growing season.”

“We are not going to have enough food to feed the world”

Both CPKC and CN have been halting shipments in preparation for the potential work stoppages.

On Friday, CN schedules showed that it started barring container imports from U.S. partner railways. The two companies have already halted shipments that need cooler temperatures, such as meat and medicine.

Rail lines carry more than $1 billion worth of goods each day, according to the Railway Association of Canada. More than half of the country’s exports travel by rail.

With files from The Canadian Press