Consumers can expect less bread, cleaners, lumber — even makeup — on the shelves as CP Rail dispute enters third day

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This article was published 22/03/2022 (1046 days ago), so information in it may no longer be current.

Consumers in the GTA already facing shortages due to the pandemic and war in Ukraine should brace for more if labour disputes between CP Rail and its workers’ union continue.

Consumers can expect less bread, cleaning products, lumber supplies — even makeup — on the shelves as the CP Rail dispute enters it’s third day Tuesday.

All commodities are impacted within the Canadian supply chain, said Salem Woodrow, spokesperson for CP Rail, adding the work stoppage is “crippling the performance of Canada’s trade-dependent economy.”

“This is terrible on a number of levels,” said Dennis Darby, president and CEO at Canadian Manufacturers & Exporters. “It’s bad for the economy and it hurts our recovery from the pandemic.”

CP Rail transports about half of Canada’s raw materials. Food, forest, plastics, chemicals and automotive parts are the most significant resources delivered by rail into the GTA.

Darby said most products on shelves could be touched in some way if the dispute continues.

“Most of our products come from big industrial, like food or chemical,” Darby said. “Packaging for food could be impacted, delaying packaged goods getting to the shelves, or impact wood-related products like in Home Depot.”

Grain will also be hit, as will fertilizer, affecting the agriculture sector.

“A good portion of items you see at the grocery store like pasta and breakfast cereal will be impacted,” said Michael Graydon, CEO of Food, Health & Consumer Products of Canada.

Garbage bags, foil wrap and plastic bags will be affected and in limited supply, Graydon added.

A significant amount of health and beauty products derive from these commodities too, he said. Nail polish and makeup use wood-related products relying on carboxymethyl cellulose, or cellulose gum.

The main concern for the Retail Council of Canada is the supply of grains and lumber, said spokesperson Michelle Wasylyshen.

There could be some other consumer goods including appliances, but the council doesn’t have data to be more specific on particular products, she said.

“We encourage consumers to be flexible and patient. If a product isn’t on the shelves, substitute it for something else,” Wasylyshen added.

To assist with the flow of goods, Darby said other transportation will have to pick up the slack, but added there isn’t enough capacity by road. The trucking industry is facing its own challenges with the skyrocketing cost of gasoline as well as labour shortages.

Jonathan Abecassis, spokesperson for CN Rail, said the company is “focused on serving its customers” when asked if it will temporarily transport CP Rail’s goods as the stoppage continues.

On March 17, CP Rail served the Teamsters Canada Rail Conference (TCRC) — the union representing some 3,000 locomotive engineers, conductors, train and yard workers nationwide — with a 72-hour lockout notice in the wake of unsuccessful bargaining over wages, benefits and pensions.

A lockout is a work stoppage initiated by the employer during a labour dispute, in contrast to a strike, which is when employees refuse to work.

On March 20, as the lockout came into effect, the union also went on strike. In a statement, the union said that in addition to the lockout, its members were on strike at CP throughout the country.

“TCRC members are already out at various Canadian Pacific locations and picketing throughout the night,” the statement said.

However, CP Rail’s Woodrow took issue with that statement. “TCRC took strike action unilaterally. To be clear, CP did not lock out its employees,” he said.

Woodrow referred to a March 20 company statement which said that the union “falsely claimed that CP had initiated the lockout” and “the work stoppage was initiated by TCRC.

“The company will be reviewing avenues to have this egregious behaviour properly addressed,” the statement said.

The union declined requests from the Star to comment on the dispute.

Labour Minister Seamus O’Regan is facing mounting pressure from industry leaders and politicians to end the dispute, with the supply chain already under immense strain from the pandemic and the attack on Ukraine.

As of March 20, O’Regan said that the best deal will be reached at the bargaining table. He didn’t say whether or not the government will table back to work legislation.

On Monday, the minister tweeted the government has “faith in their ability to reach an agreement” and Canadians expect it to happen quickly, he said.

But the stoppage has created havoc for Canada’s biggest trading partner, as U.S. lawmakers have been concerned about the dispute for weeks.

Goldy Hyder, president and CEO of the Business Council of Canada, said the damage to Canada’s reputation could be lasting, as it follows last month’s shutdown of the Ambassador Bridge between Detroit and Windsor.

“This impacts our ability to trade with the U.S.,” said CME’s Darby. “There is no question that the government must get us back on track.”

If the dispute is prolonged, he warned the cost of commodities and goods will increase.

Before CP Rail’s work stoppage, inflation was pushed to a three-decade high, with essentials such as food and fuel experiencing the sharpest price hikes. As well, 90 per cent of manufacturers were facing supply chain backlogs before the CP Rail disruption, Darby said.

“It’s in no one’s best interest to let this persist,” he said.

With files from Canadian Press and Lex Harvey

Clarrie Feinstein is a Toronto-based staff reporter for the Star. Reach Clarrie via email: clarriefeinstein@torstar.ca