Rail strike could have swift impacts at grocery stores, expert says

Canadians could see empty shelves at local grocery stores “within days” if a railway strike happens this week, according to an expert from Dalhousie University’s Agri-Food Analytics Lab.

Around 9,000 workers at Canada’s two major railways could go on strike as early as Thursday, which has the country’s food industry on edge.

Sylvain Charlebois, a professor at Dalhousie University and expert in food distribution in Canada, says shipments of frozen and refrigerated goods has been halted in preparation for potential labour action, and other products will soon disappear if the strikes occur.

“This is a major issue,” he told CityNews Halifax. “We’re 48 hours away from a major, major problem that could impact the entire logistical system in North America.”

The union representing thousands of workers at Canadian Pacific Kansas City Ltd. says it has served a 72-hour strike notice to the railway on Aug. 18. The Teamsters Canada Rail Conference issued a news release saying unless the parties can reach a last-minute agreement, workers will be off the job as of 12:01 a.m. Eastern time Thursday.

CN Rail says no meaningful progress has occurred despite weekend labour negotiations. 

“If the conflict lasts a week or two, you may not see much impact at all, but after that, everything is on the table unfortunately,” Charlebois said. “As far as access and empty shelves, we could start seeing some pictures showing empty shelves within days.”

Due to the pre-emptive action, Charlebois says fertilizers that travel by trains to farmers as of Friday have stopped coming and the frozen and perishable goods supply chain is “now compromised.”

“If you think that that is all going to start on Thursday, it’s already starting,” he said.

Not only would a strike cripple systems across Canada it would also impact trade with the U.S. Charlebois says that railway is a cheap way to move goods. According to him, 95 per cent of all grains in Canada is shipped using rail lines.

For each day of labour strike, it will take a week for the system to recover, he explained.

“So lets say the strike lasts seven days, you’re looking at more than a month to recover, and that increases costs as well,” Charlebois said.

CN Rail saying it would lock out Teamsters Canada workers if no deal is reached.

With files from The Canadian Press.