After a devastating winter that left rail lines and supply chains disrupted, shippers are about to take another setback as 3,400 rail engineers and conductors from Canadian Pacific (CP) walk out on strike this Saturday, April 21st, at 12:01am.
Frustration mounted as labor unions went into negotiations after disspointing first quarter profits and, recurring theme for North American, equipment shortages left Canadian farmers with decreased sales and dire cash flow complications; only 40 percent of cars that were requested for grain were delivered.
A strike would also be “extremely detrimental” to members of the Chemistry Industry Association of Canada who rely on rail lines to ship about 8o% of their product. Unfortunately, farmers whose only option to ship their goods via rail will have to wait until negotiations are complete.
As of now, the length of the strike is undetermined but Canada’s Federal Transport Minister, Mark Garneau, is hopeful that a resolution will be reached soon. Until a tentative deal is made between Canadian Pacific Rail and the affected labor unions, these supply chains will temporarily come to a halt.
We will continue to monitor the situation. To stay up-to-date, follow us on Facebook, Twitter, and LinkedIn for continuous updates and make sure to check out our website at greenworldwide.com.
