Reflecting on Canada’s recent strike wave
With projections pegging Canada to have the worst performing economy out of 38 advanced countries over the next forty years, Canada’s ability to enhance its productivity and competitiveness in the global economy depends on the strength and stability of our logistical infrastructure.
Ports, railways, and air travel systems form the backbone of our country’s supply chains, enabling the efficient movement of goods, services, and people. However, over the past two years, these critical arteries have been facing large setbacks from a wave of labour disruptions.
The Ports
Recent labour disputes have caused significant disruptions at Canada’s major ports, particularly in Vancouver and Montreal. Both ports are critical for exporting Canadian agricultural and forestry products, oil, and critical minerals, as well as importing many goods— including electronics and other consumer goods—totalling a combined $1 billion+ in daily trade.
Rail
The recent rail strike in Canada, involving over 9,000 workers from Canadian National (CN) and Canadian Pacific Kansas City (CPKC) railways, significantly disrupted supply chains across North America. These two companies manage around 90% of Canada’s rail shipments, transporting essential goods such as raw materials, automotive parts, agricultural products, and consumer goods. The strike created bottlenecks in the transportation of $1 billion worth of goods daily.
Source: Strategic Policy, Analysis, and Workplace Information Directorate, Labour Program, Employment and Social Development Canada. Note: Work stoppage data cover strikes and lockouts that amount to 10 or more person-days not worked.
Air Travel
Labour issues at Air Canada, including pilot contract disputes, added to the challenges in 2024. Although it did not result in widespread strikes, the prolonged negotiations created substantial challenges for travellers and businesses across Canada. Over 110,000 passengers per day were affected by flight cancellations and delays, leading to disrupted holiday plans and business travel schedules. This had notable impacts on tourism-based industries as well as businesses reliant on Air Canada’s cargo services.
Federal Employees
The recent federal employee strike in Canada, involving more than 155,000 workers represented by the Public Service Alliance of Canada (PSAC), significantly disrupted government services nationwide. The strike, one of the largest in Canadian history, halted or slowed services such as passport processing, food inspections, and tax return processing. For businesses, this meant delays in approvals, permits, and cross-border trade documentation, adding strain to sectors already grappling with supply chain challenges.
Postal Services
The Canadian Union of Postal Workers (CUPW) added to the turmoil this past year by initiating a nationwide strike on November 15, 2024. With over 55,000 workers who went on strike, the stoppage came at a critical time just before the busy holiday season, making it challenging for Canadian small businesses, particularly those relying heavily on Canada Post for deliveries.
According to Employment and Social Development Canada (ESDC) data, since 2021, more than 1.4 million unionized workers have been involved in more than 1,100 strikes and lockouts. In 2023 alone, there were 745 work stoppages resulting in more than 6.5 million person-days not worked.
The Chamber’s Q3 2024 Business Conditions Report showed a sharp increase in the number of Halifax businesses who have indicated that their supply chains have worsened, as well as a sharp increase in the number of businesses who expect supply chain obstacles to continue to worsen over the next three months.
Because of these impacts, Chambers across the country continue to advocate to Governments at all levels as well as union leadership and business leaders for the critical need to collaborate early and often to prevent these types of interruptions from further disrupting the Canadian economy. The federal government should prioritize proactive mediation and establish clear contingency plans including binding arbitration to protect Canada’s supply chain arteries.
