August 22, 2024 (Mississauga, ON) – The rail strike that began today, involving over 9,300 employees from Canadian National Railway Co. and Canadian Pacific Kansas City Ltd., has created significant disruptions across the country, particularly in the transportation of essential goods. As the leading voice of Canada’s food, health, and consumer products sector, we are deeply concerned about the far-reaching impacts this strike will have on Canadians and the economy.
Canada’s rail network is critical infrastructure, playing an indispensable role in the movement of essential goods, including food, pharmaceuticals, and other vital products. The disruption caused by this strike threatens to undermine the supply of these goods to all corners of the country, including remote and rural areas that rely heavily on rail transport. With rail used for most long-haul shipments to British Columbia, Alberta, Manitoba, and the Atlantic provinces, retailers in these regions will face guaranteed delivery delays and are likely to experience significant product shortages.
The impact extends beyond finished goods to include critical input ingredients. Many of these ingredients are imported through major ports and then distributed via rail. If the strike continues, it will affect manufacturers' ability to produce essential products, putting additional pressure on supply chains and the economy. This compounded disruption threatens not only the availability of consumer goods but also the stability of manufacturing processes.
FHCP members have taken precautionary measures, such as pre-arranging truck transport and pre-delivering stock, to keep essential products on shelves. However, these measures offer only temporary relief and will soon be insufficient as the strike persists.
The economic implications are profound. Railways transport more than $360 billion worth of goods annually, representing over half of Canada’s total exports. A prolonged strike could damage the domestic economy, tarnish Canada’s reputation as a reliable trading partner, and deter future investments in the agri-food and manufacturing sectors.
The stakes are too high to ignore. We urge all parties to prioritize a swift resolution to ensure the continuity of essential services. The current situation is unsustainable, and decisive action is needed to protect Canada’s food security, manufacturing stability, and overall economic health.
Media Inquires
Siobhan Juniku
Director, Communications
Siobhan.juniku@fhcp.ca
416-817-7301
About Food, Health & Consumer Products of Canada
FHCP is the voice of the food, health, and consumer product industry that employs over 350,000 Canadians across businesses of all sizes that manufacture and distribute the safe, high-quality products that are at the heart of healthy homes, healthy communities, and a healthy Canada. Visit us at OnEveryShelf.ca and fhcp.ca.