CIAC disappointed with lack of recognition of essential goods moved by Canada’s Class I railroads

CIAC disappointed with lack of recognition of essential goods moved by Canada's Class I railroads

August 09, 2024

The Chemistry Industry Association of Canada (CIAC) is disappointed with the decision by the Canada Industrial Relations Board (CIRB) to not recognize the essential goods that are moved by Canada's Class 1 railroads including safety critical goods from Canada's chemistry sector.

In May, the CIRB was asked to examine whether certain rail deliveries such as fuel, food and chlorine for water-treatment facilities should be declared essential services, allowing shipments to continue during work stoppages. The Board's decision is concerning. Despite concluding there are no immediate risks to public safety from a rail labour disruption, the Board does agree with CIAC and other major industries that such a disruption will result in economic hardship and the possibility of harm to Canada's global reputation as a reliable trading partner.

"Canada's economy relies on rail to keep products and commodities moving. Chemicals needed for water treatment and sewage treatment are shipped by rail. Many of our members are captive to CPKC and/or CN - there are no viable alternatives for shipments," said Bob Masterson, President and CEO of CIAC.

Companies producing highly regulated goods - about one-third of CIAC members - begin shutdown procedures before 72 hours' notice is given. Other members can only operate up to two days without rail service before having to be shut down. Most will be shut down within a week.

"The Canadian chemistry sector alone moves over 500 rail cars per day. It would require over 1,500 road-based tanker trucks to carry the same load. There is no Plan B due to the lack of availability of such trucks and drivers, the additional costs to move the products over long distances, and the fact that many chemistry products are restricted to movement on rail due to their hazardous nature," said Mr. Masterson.

More than $76 million of industrial chemical products move on Canada's rail network daily, $28 billion annually. Chemicals account for nearly 10 per cent of all Canadian rail traffic. The vast majority of automobiles, forest products, minerals, and other key resources are shipped by rail and there isn't an alternative.

CIAC urges all parties to work together to negotiate a solution. Should negotiations fail, however, the Government of Canada must be prepared to act quickly to order the parties to return to work and the negotiating table to protect Canadians, Canadian workers directly affected by the disruption, and the Canadian economy.

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