Businesses say CN strike is hurting them

Last Updated: Friday, February 16, 2007 | 2:47 PM ET

CBC News

A growing chorus of businesses say the week-old strike by 2,800 CN employees is causing major harm.

Canada's chemical industry is the latest to say the strike by conductors and railway yard workers is severely hurting business. It's asked the federal labour minister to intervene.

"We have to cut back on production because we are not receiving our raw materials by rail," said Larry Masaro, director of operations of National Silicates, a small chemical company. He estimated his company will pay $200,000 a week in extra shipping costs if the strike drags on.

A two-week shutdown at a Canfor Corp. mill in Fort Nelson, B.C., began Friday. The lumber company blamed the production cutback, in part, on the CN strike. CEO Jim Shepherd said the disruption caused by the strike "requires us to change our operating plan."

Ford of Canada sent home workers at its assembly plant in St. Thomas, Ont., earlier this week and shut the plant again Friday because of a parts shortage — a shortage Ford blamed on the CN strike.

CN has been running its freight trains with management personnel, but shippers say the railway's service has suffered. A Canada Industrial Relations Board hearing into the legality of the strike reconvenes on Monday. CN contends the strike is illegal.

On Thursday, CN asked the United Transportation Union to return to work and resume bargaining. The union rejected that, saying the railway's demand for a 60-day no-strike-notice cooling-off period was not acceptable.

The main issues in the dispute are wages and benefits.