Businesses breathe easier as Ottawa ends railway lockout

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This article was published 23/08/2024 (622 days ago), so information in it may no longer be current.

Ottawa’s decision to impose final, binding arbitration to end the railway lockout Thursday afternoon was welcome news to the business community.

Canadian Federation of Independent Business president Dan Kelly, on his social media platform, lauded Ottawa’s intervention.

“It is good to hear the government step in to get rail operations back in action,” he said.

“I’m hoping these measures work and work quickly.”

Brandon Chrysler general manager Warren Murray expressed relief at the federal intervention but criticized the delayed negotiated settlement.

“While I always prefer negotiated settlements, in this case, it’s probably better for the economy to get them back to work,” Murray told the Sun on Thursday.

Murray said the lockout had already begun to disrupt vehicle shipments, with all orders not yet landed in Winnipeg facing delays.

If the lockdown was not averted, “it could take us back to the tough times we faced during the pandemic when vehicle supply was severely limited,” he said.

He noted that while trucking might offer a short-term solution, it is not viable long term due to the sheer volume of vehicles that need to be moved.

“The whole economy is tied to the rail lines, and if the disruption had continued, everyone would suffer, not just the car dealers,” he said.

Brandon West MLA Wayne Balcaen said his constituents have been extremely concerned about the potential impact of the rail shutdown on their businesses and daily lives.

“Many have told me they feared this disruption would drive up prices even further, especially on essential goods. The government needed to act sooner,” Balcaen said in an interview on Thursday before the federal government announced it would intervene.

Balcaen, who had previously called on Premier Wab Kinew to advocate for binding arbitration, added that the lockout would have had severe consequences for Manitoba, particularly as the province continues to recover from supply-chain disruptions caused by the COVID-19 pandemic.

“One train can carry as many as 300 trucks, and the loss of rail service would have been a significant blow to our economy,” he added.

Kinew, before Ottawa’s decision, said the provincial government was talking to the federal government on “how to get trains moving again.”

“Our government wants agricultural producers and those in the manufacturing sector to know that we’ve got your back,” he said in an email.

“It is irresponsible for these two companies to lock out workers, and we believe that the best deals are reached at the negotiating table. These industries are vital to Manitoba’s economy and this lockout will negatively impact these sectors at an important time of the year.”

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