By Sheldon Spackman

Not Good For The Economy

Red Deer Chamber hoping for quick resolution in CP labour disruption

Mar 21, 2022 | 4:14 PM

Officials with the Red Deer and District Chamber of Commerce are expressing concern over the potential impacts of the CP labour disruption.

Chamber CEO Scott Robinson says the current situation won’t help the ongoing supply chain issues seen throughout North America over the past couple of years.

“We’re hoping for a quick resolution to minimize the further impacts that we’re seeing on the supply chain system here in central Alberta,” says Robinson. “From our perspective, you want the employer and the employees to work together to a resolution, knowing how important it is and how important it is to get back operating at full capacity.”

Robinson notes, however, they don’t have a specific timeline as to how soon the federal government should step in.

“Anything beyond a week or two here is certainly going to add a lot of pressure to the overall system, which will ultimately impact consumers,” he points out. “The price of everything goes up when we can’t find or can’t get things to operate our businesses with, whether that be in construction, or retail or manufacturing. We’ve got a lot of that in central Alberta and we want to make sure that we continue to come out of our COVID recovery in a healthy way and these kinds of things are certainly not good for the economy, so it can’t go on for too long before government intervention is going to be required.”

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Robinson says many local industries will feel the impact of the labour disruption.

“Of course we have the CP depot here in Red Deer, so everything from auto parts, to construction materials, to items more industrial in nature, are probably the things that are most likely to be affected,” suggests Robinson. “But it begs the question, what actually does come by rail versus by truck or some other means? The bottom line is, it certainly isn’t a good thing for the overall economy in general.”

Robinson acknowledges it’s a very delicate time with everything going on in the world while still coming out of the pandemic.

“I think everybody is hopeful and looking forward to growing the economy and a healthy business climate here in central Alberta, both for employees and for business owners,” concludes Robinson. “And we hope that the two sides can get things settled as soon as possible and get on with a full recovery for our region and our country.”

Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) said Sunday, that while the company was still engaged in ongoing negotiations facilitated by federal mediators, the Teamsters Canada Rail Conference (TCRC) withdrew its services and issued a news release misrepresenting the status of the talks.

“We are deeply disappointed that, in the final hours before a legal strike or lockout was to potentially occur, the TCRC Negotiating Committee failed to respond to the company’s latest offer that was presented to them by the federal mediators,” said Keith Creel, CP President and Chief Executive Officer. “Instead, the TCRC opted to withdraw their services before the deadline for a strike or lockout could legally take place. The TCRC is well aware of the damage this reckless action will cause to the Canadian supply chain.”

Additionally, prior to the midnight deadline, CP says the TCRC Negotiating Committee issued a news release that completely misrepresented the truth. ”

“The release falsely claimed that CP had initiated a lockout. Contrary to the TCRC Negotiating Committee’s claim, the work stoppage was initiated by the TCRC. In reality, it was CP, with the Director General, Federal and Conciliation Services, that remained waiting at the table with the desire to continue bargaining,” reads a news release on the company’s website.

Meantime, TCRC said in a news release Saturday that as Canadians grapple with a never-ending pandemic, exploding commodity prices and the war in Ukraine, the rail carrier is adding an unnecessary layer of insecurity, especially for those who depend on the rail network. 

“We are very disappointed with this turn of events,” said Dave Fulton, TCRC spokesperson at the bargaining table. “Canadian Pacific management must be taken to task for this situation. They set the deadline for a lockout to happen tonight, when we were willing to pursue negotiations. Even more so, they then moved the goalpost when it came time to discuss the terms of final and binding arbitration.”

“In final and binding arbitration, the parties agree to accept the arbitrator’s decision as final, reads the release. “The Teamsters were willing to explore this type of arbitration, but were unable to reach an agreement with the employer.”

“Wages and pensions remain major stumbling blocks,” the statement continues. “However, also at issue in these talks are working conditions that call into question the railway’s capacity to recruit and retain workforce members.”

On Tuesday, NDP Transportation Critic Lorne Dach and NDP Agriculture and Forestry and Rural Economic Development Critic Heather Sweet will be formally requesting the UCP form a bipartisan Legislative committee to analyze supply chain issues facing Alberta and make recommendations on supports, legislation changes and other matters.

“This may be a political game for the UCP, but it’s not for the Albertans struggling to make ends meet and whose businesses are suffering as a result of supply chain issues,” Sweet said. “We need to come to the table, consult broadly and come up with solutions.”