Impending CN Rail Strike and Its Potential Impact on Canadian Supply Chains

27 Jan Impending CN Rail Strike and Its Potential Impact on Canadian Supply Chains

The International Brotherhood of Electrical Workers (IBEW), representing approximately 750 signals and communications employees at Canadian National Railway (CN), has issued a 72-hour strike notice. If no agreement is reached, the union will go on strike starting Tuesday, January 28, 2025.

The union, backed by a 95% strike mandate, is pushing for better work-life balance and higher pay. CN has responded by confirming its awareness of the notice and outlining contingency plans to minimize disruptions. However, significant challenges are anticipated across Canada’s supply chain.

Key Impacts of the Potential Strike

  1. Delays in Rail Movement:
    Rail shipments across Canada may face significant delays, disrupting scheduled deliveries and causing ripple effects throughout supply chains.
  2. Worsening Backlogs at Halifax Port:
    The Port of Halifax, already experiencing severe congestion and long dwell times, is expected to see further backlogs, increasing delays for imports and exports.
  3. Supply Chain Interruptions:
    Businesses reliant on rail freight may encounter inventory shortages, missed deadlines, and operational disruptions.
  4. Increased Costs:
    Companies may need to rely on alternative transportation options, such as trucking, leading to higher logistics costs.

CN and the IBEW are urged to work toward a resolution before the strike deadline to avoid these impacts. Businesses are advised to prepare for potential disruptions and explore contingency options to safeguard their operations.



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