Rail strike could cost Canadian manufacturers millions, industry says

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A rail strike would raise expenses, lower sales and delay shipments for Canada's manufacturers, an industry group says, as various sectors grapple with looming uncertainty around a key cross-country transport link.

A CN Rail train moves cargo containers at the Centerm Container Terminal at port in Vancouver. A rail strike would raise expenses, lower sales and delay shipments for Canada's manufacturers, an industry group says, as various sectors grapple with looming uncertainty around a key cross-country transport link.

Manufacturers — from auto and chemical makers to propane exporters and brewers — are worried about the prospect of a work stoppage, said Dennis Darby, who heads the group. The cost of a rail traffic halt would average $275,000 per company each day, according to the 225 respondents. If accurate, that means the cost for a sliver of Canada's manufacturers alone would top $433 million per week.

Darby said that Ottawa can now use "moral suasion" to wring a deal out of the two sides. Longer-term, Ottawa should look to frame rail transport as "some kind of an essential service" in order to impose binding arbitration if necessary, he said.

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