Alberta business associations warn of costly impacts ahead of looming rail strike

With both of Canada’s major rail lines threatening a potential lockout, business associations in Alberta are sounding the alarm on the potential impacts.

Wage and scheduling negotiations between CN, CPKC and the union representing 9,300 conductors, engineers and rail yard workers have been going on for months.

The companies have issued a lock-out notice for Aug. 22, following the Canada Industrial Relations Board's recent decision that deemed rail service not "essential" under the Canada Labour Code.

The Calgary Chamber of Commerce says it has deep concern over the decision, adding a rail disruption would extensively affect agriculture, energy, construction and manufacturing industries.

"Trade infrastructure is vital to the health and success of the business community in Calgary and across Alberta and Canada," said Deborah Yedlin, president and CEO of the Calgary Chamber of Commerce.

"So many businesses – from small to large – rely on a stable and predictable supply chain to ensure they receive the inventory they need, or to ship their product to market to keep their businesses moving."

The Business Council of Alberta is also among those calling for action.

The council, representing 135 businesses in the province, is asking the federal government to intervene.

It says the federal government must protect the broad interest of all Canadians, and keeping the railways rolling is key to that.

"Canada’s rail systems are essential to nearly every sector of our national economy, and especially so as we approach the critical harvest and food distribution season," noted the association’s president Adam Legge in a news release.

"A stoppage in rail commerce would be simply too costly to Canadians at this critical time, harming our economy and worsening the affordability issues affecting so many."

With the negotiation deadline looming, CN and CPKC have already stopped the shipment of some hazardous goods from the U.S.

The companies say the embargo list will expand over the coming days to ensure no dangerous items are left stranded if a work stoppage were to happen.

With files from Keenan Sorokan and The Canadian Press