Edward J. Zarach & Associates closely monitor developments surrounding the potential strike at Canadian National Railway (CN), beginning on January 1, if an agreement isn’t reached. This strike, involving over 3,600 workers, including mechanics, technicians, crane operators, machinists, electricians, and administrative staff, underscores critical supply chain challenges for businesses relying on rail transportation.
The Strike Mandate
On November 25, CN employees represented by Unifor’s Council 4000 and Local 100 voted overwhelmingly—97% and 96%, respectively—to approve a strike mandate. The workers are demanding improved job security, compensation, and working conditions. Negotiations, which resumed on November 27 and continue through December 8, are critical for averting the strike. If the parties fail to reach an agreement, a strike would disrupt rail operations during a crucial period in logistics.
Potential Impact on Supply Chains
CN Railway is vital in North American freight, moving goods across industries, including automotive, energy, agriculture, and consumer products. A strike would exacerbate supply chain challenges, such as delays, increased costs, and congestion at alternative transportation modes like trucking and maritime ports.
Previous rail work stoppages have demonstrated the far-reaching consequences of disrupted freight movements. For businesses, this means potentially higher costs, stock shortages, and difficulties meeting customer demand.
Strategies for Businesses
To mitigate risks associated with a potential CN strike, Zarach recommends that businesses:
- Evaluate Alternative Routes: To maintain supply chain continuity, explore other transportation modes, such as trucking or intermodal solutions.
- Review Inventory Levels: Adjust inventory strategies to build safety stock, reducing the risk of delays.
- Engage with Logistics Providers: Collaborate with logistics experts to develop contingency plans tailored to your specific needs.
Zarach’s team of international freight and customs experts is ready to assist clients in navigating the potential disruptions. From securing alternative routes to optimizing customs clearance for cross-border shipments, we provide proactive solutions to keep your supply chain moving.
Looking Ahead
While the strike is not guaranteed, businesses should prepare for potential disruptions. With over 3,600 workers potentially walking off the job, the effects could ripple across the continent. Edward J. Zarach & Associates will continue to provide updates and insights to help clients adapt to the evolving situation.
Contact Zarach today for expert guidance on mitigating supply chain disruptions and ensuring smooth operations during potential CN Railway strikes. Let us help you adapt to changing logistics challenges.