Canadian Manufacturing

Canadian Manufacturing Coalition pleads for CPR and TCRC to reach deal

CME says that labour disruptions at CP Rail will hurt Canada's reputation as a reliable supply chain partner. 

March 14, 2022   by CM Staff

OTTAWA — The Canadian Manufacturing Coalition has put out a statement calling on the Canadian Pacific Railway and the Teamsters Canada Rail Conference to reach an agreement in order to avoid labour disruptions to the country’s manufacturing and exporting sectors.

The statement from Canadian Manufacturers and Exporters has explained that the these sectors rely heavily on rail transportation services. Additionally, CME stated that their industry employs over 1.7 million Canadians and makes up more than 10 per cent of the country’s GDP.

“CP Rail is a critical link in manufacturing supply chains, and it is how we move our goods to markets across North America,” reads the CME statement.

According to research from CME, nine of 10 Canadian Manufacturers have reported supply chain issues. More than 60 per cent have rated supply chain disruptions as either major or severe. Participating manufacturers to this study also reported losing approximately $10.5 billion in sales due to supply chain disruptions exclusive of the $1 billion in increased costs of operation.

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CME has also expressed concern that labour disruptions at CP Rail will hurt Canada’s reputation as a reliable supply chain partner.

“A strike would seriously impact our global competitiveness, exacerbate supply chain problems, and drive away investment into Canadian manufacturing. This situation must be avoided at all costs, and we implore both sides to reach an agreement now,” reads the statement from CME.