The “Shut Down Canada” campaign appears to be working. Unfortunately, those being hurt are the most vulnerable in our economy: small and medium-sized businesses.
The Canadian Federation of Independent Business has begun hearing from employers across the country about the effects this service interruption is having on their businesses. A prolonged disruption could lead to a loss of key contracts or customers, putting the future of their firms and the livelihoods of their employees at risk.
Some of the most affected sectors include farming, mining, forestry and natural resources. But manufacturing, retail, transportation and wholesale are also increasingly feeling the effects of these actions.
One medium-sized manufacturer I’ve spoken with in Nova Scotia told us they are already rationing propane, and “are conserving as best we can, but if we run out of propane to heat the plant, we may have to lay off our employees.” Propane delivery companies across the province are also looking at layoffs.
As we know, shipments destined for the Port of Halifax are being sent to the United States, as Atlantic Container Line has decided to no longer ship goods to Nova Scotia while the rail crisis continues. This is also causing what could become irreparable reputational damage — not just for large companies, but for smaller firms that risk losing business permanently when clients shift to other suppliers.
Container giant Hapag-Lloyd is now is preparing to route cargo away from Halifax because protests have paralyzed the rail system in Eastern Canada and another major shipping company, ZIM, is "monitoring" the situation.
One CFIB member told us they have a 40-foot container stuck in Montreal and the cost to move it would be well over $2,000 to get the goods removed from the container and shipped here via truck. The firm’s money is tied up in sold products, and if those products don’t get delivered, she will have cancelled sales.
The cold reality is Canada’s small businesses rely heavily on our rail networks to send and receive products, which keeps their doors open to serve customers and pay their employees.
Small businesses also often have fewer financial resources to weather a disruption. They simply don’t have the float to be able to carry on if their revenues are delayed or, worse, completely wiped out. If the rail disruptions continue, CFIB is also urging the Canada Revenue Agency to be flexible with the tax obligations of small businesses that are severely affected.
This crisis requires leadership and the personal involvement of the prime minister. That means putting the structure and direction in place for a resolution. Endless calls for “dialogue” provide little predictability for small-business owners who need assurance the federal government is managing the economy.
If this is not resolved quickly, there is also concern other small groups with their own agendas may employ this tactic of holding the economy hostage through transportation barricades, which would result in anarchy.
CFIB is calling on the federal and provincial governments to work together and with law enforcement agencies now to ensure rail service is immediately resumed. Canada’s reputation as a dependable place to do business is at stake if a speedy resolution is not reached.
Jordi Morgan is vice-president, Atlantic, for the Canadian Federation of Independent Business.
