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Beertown opens latest location in Whitby, second location coming for London

Photo courtesy of Beertown

The Beertown Public House brand continues to grow with the opening of its latest location in Whitby, Ontario.

The Charcoal Group, based out of Kitchener, Ontario, owns the brand which now has 11 locations.

Jody Palubiski

“We just opened our tenth location last year and it feels like we are surpassing a huge milestone and moving on to something bigger than we ever imagined,” said Jody Palubiski, partner and CEO of the Charcoal Group. “We are excited to build off this momentum and to continue our goal of creating a dining revolution.

“We’re also in the midst of building number 12 which will be our second unit in London at White Oaks Mall.”

He said that location should open in early November.

The first location opened in Cambridge, Ontario in April 2012. All the locations are in southwestern Ontario – in order of opening, Cambridge, Waterloo, London, Burlington, Oakville, Guelph, Barrie, Toronto, Etobicoke, Newmarket and now Whitby.

“Two of my partner’s parents founded the Charcoal Steak House in 1955. So we have quite an extensive legacy and history within the company. Lots of relationships built over that time. My two partners bought that business from their parents back in the 90s. And back in 2003-2004 I joined the group with the idea that we were going build on the history of the Charcoal Steak House and build the Charcoal Group of Restaurants,” said Palubiski.

“At the time, Kitchener-Waterloo was in the middle of a big tech boom with Blackberry, Open Tech, all of those businesses. We opened Wildcraft (Grill + Long Bar) as an extension of that. When it first opened it was known as the RIM cafeteria  – Research in Motion which became Blackberry. We opened Wildcraft in 2007. We opened The Bauer Kitchen in 2009.

“The recession hit and we started looking at who was doing well and where the needle was going and where the puck was going. The results were saying we really felt good about this beer orientation. The craft beer we thought was an emerging market.

“We’ve come from a background of quality food, quality dining experiences and then we married that with craft beer. Although it’s called Beertown, we’ve worked really hard to make sure the food and the program around hospitality and the level of detail management has lived up to everything else in our history and continue to carry that forward.”

The Whitby location is a repurposed former Montana’s location. 

“We’re actually actively in discussions on two more. We want to continue to grow but in our world we don’t have a lot of the pressures that competitors have. We’re not a public company. Everyone in this company is focused on excellence before growth and we always joke internally that excellence comes before growth in our group not just in the dictionary,” said Palubiski.

“There’s nothing that says we have to grow. We grow based on opportunities, taking our brand of hospitality further and farther, but when we feel as if we want to we do and when we feel when we’re in a position to do it in keeping with our history we do it. Right now we’re feeling very, very empowered.”

He said the company is energized by the reception and the performance of that business. 

The Charcoal Group includes The Charcoal Steakhouse, Martini’s, Dels Italian Kitchen, Wildcraft Grill & Long Bar, The Bauer Kitchen, The Bauer Bakery & Café, Moose Winooski’s, Beertown Public House, and Sociable Kitchen & Tavern.

Photo from Beertown Instagram

Loblaw challenges grocery norms with minimalist No Name concept stores [Op-Ed]

Photo: Loblaw Companies

Canada’s recent railway shutdown has once again highlighted the challenges of doing business in this country, particularly in sectors as critical as food distribution. We are forced to turn to domestic players and policy measures to foster greater competition within the market. This brings us to a significant move by Loblaw, Canada’s largest grocer, which has just made an intriguing announcement that could redefine the competitive landscape of the grocery industry.

Loblaw plans to open three No Name stores in medium-sized Ontario cities—Saint Catharines, Windsor, and Brockville—this Fall. These stores will carry a limited selection of 1,300 products, primarily under the President’s Choice and No Name brands. Notably, these stores will operate without a cold chain, meaning no refrigerators or freezers will be used. The concept is minimalist: no frills, just basic shelving stocked with shelf-stable food, supported by a skeleton staff, and housed in modest real estate. The goal is clear: keep operating costs low to pass on savings to consumers.

For a company with a near-ubiquitous presence across Canada, it’s surprising that Loblaw continues to find new opportunities to expand. However, what’s even more striking is the company’s willingness to potentially cannibalize its own market share by opening these new stores. This move suggests that Loblaw is unafraid to disrupt its own business model to stay ahead of the competition.

Even the imagery supplied to press is no frills — a mock up of new no name store front (CNW Group/Loblaw Companies Limited – Public Relations)

Historically, Canadian grocers have been quite territorial, often focusing on markets that follow the country’s traditional rail lines—a relic of an earlier era in commerce. But in today’s world, where consumers are more informed and price-sensitive, this outdated “rail track” mentality is increasingly irrelevant.

The idea of self-cannibalization has long been a nightmare for grocers, deterring them from expanding in ways that could increase competition and offer Canadians more choices. However, Loblaw’s decision to launch these No Name stores marks a significant departure from this mindset, recognizing that the competitive landscape has evolved, especially in the wake of recent food inflation.

Consumers, now more than ever, are astute bargain hunters, diversifying their shopping habits beyond traditional grocery stores to include dollar stores, discount retailers like Giant Tiger, and even mass merchandisers such as Walmart. Loblaw’s new No Name stores are a strategic response to this shift, aiming to bring budget-conscious shoppers back under the Loblaw umbrella.

Loblaw pilots no name store to help customers save on food and household essentials (CNW Group/Loblaw Companies Limited – Public Relations)

This announcement follows another significant move made by Loblaw in June, when it revealed plans to open 40 new No Frills stores, each spanning 15,000 square feet. Both initiatives underscore a growing trend: discounts are paramount, and they will likely remain so for the foreseeable future. While interest rates are gradually decreasing, the pace is too slow to provide immediate relief to consumers, many of whom are trimming their budgets wherever possible, including their grocery bills.

Another factor at play is the uneven service across different markets. While hyper-urban areas like Toronto, Montreal, Vancouver, and Calgary boast numerous grocery options, smaller or medium-sized cities often suffer from limited competition—a legacy of the old “rail track” mindset. Loblaw has astutely identified this gap and is seizing the opportunity to better serve consumers in these underserved areas, which straddle the line between rural and urban.

Whether this strategy will succeed remains to be seen. However, if it does, Loblaw could quickly scale this No Name concept nationwide. So, Canadians should not be surprised if these minimalist stores pop up in their communities, regardless of where they live.

This move by Loblaw signals a broader trend within the industry: the growing importance of adaptability and innovation in response to shifting consumer demands and economic realities. As competition intensifies, we can expect more bold moves from major players in the market, each vying for a piece of the increasingly frugal consumer’s dollar.

Federal Government Intervenes in Canadian Railway Labour Dispute

Image: Shutterstock

Canadian Pacific Kansas City (CPKC) and Canadian National Railway (CN) have been ordered by the federal government to end their recent network shutdowns. The directive comes as part of a broader intervention to resolve ongoing labour disputes that have significantly impacted the nation’s transportation infrastructure this week. 

Labour Minister Steve MacKinnon announced on Thursday that the government would be sending the labour disputes for final arbitration at the Canadian Industrial Relations Board (CIRB). This decision was made less than 24 hours after both railway companies locked out workers and halted operations across their networks, following failed attempts to secure new contracts with their respective unions by Wednesday’s midnight deadline.

Citing the potential risks to Canadians and the economy, MacKinnon invoked his ministerial powers to bypass the collective bargaining process. “There is no question we are at an impasse. The parties remain very far apart on the issues,” he stated. “The effects of the impasse are being borne by Canadians every day.”

While declining to provide a specific timeline for the resumption of rail services, MacKinnon expressed his expectation that trains would be running again within days. However, he emphasized the need to respect the independence of the CIRB in this process. As part of the intervention, the Labour Minister has also directed the CIRB to extend the previous collective agreements during the arbitration proceedings.

The railway shutdown has far-reaching consequences for multiple industries on both sides of the Canada-U.S. border, as well as commuters in major cities like Toronto and Vancouver that rely on CPKC tracks. Business groups have estimated that the closure of both of Canada’s freight railways could cost the economy billions of dollars. In response, various lobby associations and some provincial premiers have urged the federal government to take action.

The work stoppage has affected a wide range of sectors, including grain shipments, chlorine transportation for municipal water treatment plants, and the movement of consumer goods. More than 9,000 rail employees represented by the Teamsters Canada Rail Conference are currently off the job due to the dispute.

Both railway companies had been requesting government intervention for weeks, seeking to have their cases sent to binding arbitration. However, Ottawa initially declined these requests, insisting that the parties work towards a negotiated settlement. MacKinnon explained that the government wanted to give negotiators and mediators the opportunity to reach agreements independently. It was only when the deadlines passed and the lockouts occurred that he determined it was time for federal intervention.

Jersey Mike’s location in Canada opening, triggering massive expansion plans

Photo courtesy of Redberry Restaurants

Redberry Restaurants is opening its first of 300 Jersey Mike’s restaurants, known for their fresh sliced/fresh grilled subs, in Canada – the first major international expansion in the company’s 68-year history.

The company has plans to substantially increase its footprint in Canada over the next 10 years with the restaurant in Markham, Ontario being the first.

Ken Otto

“We are excited to bring A Sub Above to the Greater Toronto Area,” said Ken Otto, CEO, Redberry. “This is Redberry’s first new Jersey Mike’s location to open in Canada and we can’t wait to share this iconic brand with our new neighbors.”

Markham is the first of six new Jersey Mike’s locations planned for Ontario in 2024, forming the foundation for rapid new store growth. By the end of the year, Redberry will open additional GTA locations including York Mills and Union Station as well as three others in Brantford, Guelph and Pickering. These six locations will employ nearly 100 crew members. Redberry also owns the two existing and recently remodeled Jersey Mike’s locations in Kitchener and London.

Redberry previously purchased two existing Jersey Mike’s locations in Kitchener and London, Ontario. 

To celebrate, Redberry will hold a grand opening and fundraiser from Wednesday, August 28 to Sunday, September 1, to support Make-A-Wish Canada. Customers who receive a special fundraising coupon distributed through a grassroots effort prior to the opening can make a minimum $3 contribution to Make-A-Wish Canada in exchange for a regular sub. Customers must have a coupon to be eligible, said the company.

Jersey Mike’s has had an on-going partnership with Make-A-Wish Canada. In March 2024, the Kitchener and London locations raised $12,000 during Jersey Mike’s Month of Giving to benefit this local charity partner.

In 2023, nearly 500 wishes were granted in Ontario. Still, more than 1,260 children, including 15 children in Markham, are currently waiting for their wishes to be granted.

Photo from Jersey Mike’s website

Redberry Restaurants Earns Top Honour at Canadian Hospitality Industry Awards

Image: Burger King Canada

Canadian quick-service restaurant franchisee Redberry Restaurants has been named Company of the Year at the 2024 Pinnacle Awards, solidifying its position as a powerhouse in the nation’s hospitality industry.

As the largest operator of Burger King and Taco Bell locations in Canada, and the Canadian Area Director for Jersey Mike’s Subs, Redberry says it has demonstrated remarkable growth and innovation in the competitive fast-food market. The company currently manages over 190 restaurants across the country, with ambitious plans to expand its portfolio by more than 600 additional locations in the coming years.

Ken Otto, Chief Executive Officer of Redberry Restaurants, expressed his gratitude for the recognition: “This honour reflects the dedication and hard work of our entire team. Our commitment to growth and positive community impact is at the core of our success.” 

The past year has been particularly successful for Redberry, with the company reporting a 16.2% increase in store units, a 16.4% rise in revenue, and a substantial 30% growth in EBITDA. Looking ahead, Redberry anticipates new unit growth to approach 20% in 2024, further cementing its position as one of Canada’s fastest-growing restaurant franchisees.

Beyond financial achievements, Redberry has distinguished itself through robust community engagement initiatives. The company actively supports programs such as the Taco Bell Foundation, The Burger King Scholarship Foundation, and various grassroots efforts with Jersey Mike’s Subs. A notable contribution includes a significant donation to Make-A-Wish Canada, demonstrating Redberry’s commitment to corporate social responsibility.

Redberry’s success extends beyond its balance sheet, encompassing high guest service scores, successful new location openings, and extensive employee engagement programs. The company provides employment opportunities for nearly 5,000 individuals across Canada, fostering a diverse workforce that embodies its core values of Partnership, Respect, Integrity, Diversity, and Empowerment.

Kiran Benet, Chief People Officer of Redberry Restaurants, emphasized the company’s unique culture: “We’ve created an environment where our teams are empowered to add value and make a difference. This approach has made us a different kind of restaurant company, with a culture that’s widely admired in the industry.”

The Pinnacle Awards, established in 1988 by Kostuch Media Ltd., celebrate excellence in the hospitality industry. Winners are selected by a judging panel from a list of nominees compiled through industry recommendations and selections made by Foodservice and Hospitality and Hotelier magazines.

The 35th Annual Pinnacle Awards ceremony will take place on December 6, 2024, at the Fairmont Royal York Hotel in Toronto, where Redberry and other industry leaders will be formally recognized for their outstanding contributions to Canada’s hospitality sector.

Petro-Canada Rolls Out Mandatory Prepay Fuel Policy Across Ontario

Photo: Petro Canada

Petro-Canada is set to implement a change in how customers purchase fuel at its Ontario locations. Starting September 3, 2024, the majority of Petro-Canada stations across the province will require customers to prepay for their fuel, either at the pump or inside the store.

This move marks a shift in the company’s operational strategy, aligning Ontario with practices already common in other parts of Canada. The decision comes as part of a broader industry trend addressing safety concerns and combating fuel theft, issues that have gained prominence in recent years.

The corporation emphasizes that this proactive change aims to ensure safety at their locations while simultaneously reducing the risk of fuel theft.

The timing of this policy implementation, immediately following the Labour Day long weekend, suggests a strategic approach to minimize disruption during the busy summer travel season. Petro-Canada has assured customers that they will be well-informed of the change through signage at stations and additional communication efforts.

While Petro-Canada is taking a lead in implementing this policy across its Ontario network, it’s part of a larger conversation within the fuel retail industry. The Canadian Fuels Association reports that approximately 78% of gas stations in Canada are independently owned, allowing individual retailers to make their own decisions regarding prepayment policies.

Other major players in the industry are also addressing these concerns. Shell, for instance, has already implemented prepayment systems in jurisdictions with existing legislation or at locations deemed high-risk for theft. In Ontario, where such legislation doesn’t exist, Shell continues to assess each site based on safety, security, and customer needs.

The move towards prepayment comes against a backdrop of increasing fuel thefts across Canada. While Petro-Canada has not disclosed specific figures, other provinces have reported significant spikes in fuel-related crimes. In Saskatchewan, for example, RCMP data showed a 70% increase in fuel thefts in 2022 compared to the previous year.

Loblaw pilots new no name® store

Mock up of new no name store front (CNW Group/Loblaw Companies Limited - Public Relations)

Loblaw Companies Ltd. announced Thursday its plans to pilot a new concept, value-based no name store in three Ontario markets. 

It said the no name store will help customers save up to 20 per cent on everyday grocery and household essentials, by lowering operating costs and carrying only a targeted assortment of products.

The no name store is piloting in three markets in Ontario, beginning in September 2024: Windsor, St. Catharines, and Brockville.

Per Bank

“Our goal is simple – providing food and essential household items across a limited range of national brands and no name brand products at our lowest possible price,” said Per Bank, President and CEO, Loblaw. “Since food inflation took off globally, we have been laser-focused on doing what we can to keep prices lower for customers, including opening more discount food locations in more parts of the country. This new test concept allows us to pass on lower prices to our customers – it’s a completely different and simplified shopping experience.”

The company said no name stores are reducing operating costs through a variety of ways, including:

  • Shorter operating hours (10am-7pm)
  • Smaller assortment means the store is less complicated to run
  • Limited marketing and no flyers
  • No refrigeration (no dairy or fresh meat products)
  • Reused fixtures – shelves, cash lanes – to minimize building costs 
  • Fewer weekly deliveries, reducing logistic costs
Melanie Singh

“Our commitment to customers is that products at the no name store will be up to 20% less than the regular retail price on a comparable product at any of the four main discount grocers in that local area. These no name stores will have a limited selection of 1,300 products, but these are many of our top-selling pantry staples and household goods throughout the province, so we know they’re what customers buy most and what will bring them the biggest savings,” said Melanie Singh, President, Loblaw’s Hard Discount Division. “This is a test and learn project, and we’re planning to listen and adjust quickly. The pilot is unchartered territory and while success isn’t guaranteed, our commitment to creating value and meeting customer needs remains unwavering.”

Loblaw pilots no name store to help customers save on food and household essentials (CNW Group/Loblaw Companies Limited – Public Relations)
Loblaw pilots no name store to help customers save on food and household essentials (CNW Group/Loblaw Companies Limited – Public Relations)

Loblaw said customers can expect a small range of frozen food items, complemented by pantry staples, household necessities, and shelf-stable bakery and produce items including bread, bagels, apples, bananas, peppers, and carrots. This curated line up of products ensures every item on the shelves contributes to the store’s mission of affordability and quality. 

Sylvain Charlebois
Sylvain Charlebois

“It’s an intriguing strategy for Loblaw. The company is clearly no longer concerned about cannibalizing itself and seems to be targeting the Dollarama and Giant Tiger market in smaller areas. This is an aggressive move forward,” said Sylvain Charlebois, Professor and Senior Director of the Agri-Food Analytics Lab at Dalhousie University.

“I’m not sure it will be successful, but Loblaw is targeting the non-urban market, which has been somewhat underserved compared to major urban centers like Toronto, Montreal, or Vancouver. Only time will tell.”

Loblaw Companies Limited is Canada’s food and pharmacy leader, as well as its largest retailer and private sector employer. With over one billion transactions each year in its network of 2,500 stores and national e-commerce options, Loblaw brings food, pharmacy, beauty, apparel and financial services to customers through many brands: President’s Choice, No Name, Loblaws, Shoppers Drug Mart, No Frills, Real Canadian Superstore, T&T, Joe Fresh, PC Express and PC Financial. The Company’s loyalty program, PC Optimum, has more than 16 million active members.

HOTWORX looking for opportunities to expand into Canada

Photo credit: HOTWORX

HOTWORX, North America’s one-of-a-kind 24-hour infrared fitness studio, is coming to Canada.

For the first time, HOTWORX franchise opportunities are now available for entrepreneurial Canadians looking to join the fitness world and open a HOTWORX studio, and be among the first to open a location in Canada.

HOTWORX’s has a revolutionary three-fold fitness approach combining infrared energy, heat and virtually instructed exercise programs, which ensures maximum workout efficiency in less time.

Stephen Smith, Founder and CEO of HOTWORX, said the company is actively seeking fitness-minded owners who want to be part of the HOTWORX world. 

Stephen Smith

“We work closely with our franchise partners to help them set up for success and grow in their markets. A HOTWORX fitness studio doesn’t require a big real estate footprint, which makes it an appealing opportunity for franchisees in Canada,” he said.

“We are excited to introduce Canadians to our unique fitness studios that not only deliver superior results but also provide an immersive workout experience,” Smith said. “With our 24/7 accessible studios and innovative 3D Training Method, HOTWORX is an ideal solution for Canadians looking for a workout unlike any other fitness program available.”

The concept, which is based in New Orleans, was launched in 2017 with the first location in Mississippi. Today, there are 676 locations.

“We should open the 700th store this September,” added Smith. The vast majority of the locations are in the U.S. with one in Ireland and one in Saudi Arabia and one to open soon in Dubai.

“I’ve been told by bankers and other people that in the fitness we’re the most differentiated brand that’s out there.”

HOTWORX combines traditional workouts with cutting-edge technology, offering a unique approach to fitness. HOTWORX’s patented workout saunas use infrared energy, a type of electromagnetic radiation that penetrates the skin to reach muscles and joints and produces heat. When combined with workouts, infrared energy and heat can amplify the benefits of exercising from enhanced muscle warm-up and increased circulation to enhanced caloric burn, fat oxidation, and reduced pain.

Photo credit: HOTWORX

The HOTWORX 3D Training Method

The HOTWORX 3D Training method revolutionizes fitness through:

  • Heat: Elevates core body temperature, boosting metabolism.
  • Infrared Energy: Penetrates on the cellular level, accelerating detoxification and strengthening the body’s regenerative processes.
  • Exercise: Features isometric and HIIT programs to increase heart rate and maximize calorie burn

Hot Workout Programs

Each HOTWORX studio offers 12 unique virtually instructed workouts:

  • Isometric Workouts (30 minutes): Hot ISO, Hot Yoga, Hot Pilates, Hot Barre, and more.
  • HIIT Workouts (15 minutes): Hot Cycle, Hot Thunder, and Hot Blast.
  •  24/7 Accessibility

Smith said the saunas in the studios have a patented design that allows for three people to come inside, face a screen and do a workout to a virtual instructor.

“We’re looking for a master franchisee partner for Quebec since Quebec is so unique in many ways including language,” he said. “Then we’re going to sell direct into all the other provinces in Canada. We started that marketing push and getting very close to some actual new franchisees. It looks like British Columbia is going to be the first place that we’re going to be in. That may not hold true but it looks like that’s where we’re getting the traction first.

“We are speaking with many prospects now and we should have a number of new franchisees within weeks or the coming months.”

Smith said Canadian growth could be similar to the U.S. The company’s strategy from the beginning was to target a location to service every 100,000 people in the market.

Typical size of a location is about 2,000 square feet.

Avi Behar and Larissa Jacobson-Rooke of The Behar Group Realty Inc. are representing the brand for its Canadian expansion.

The expansion into Canada is not just exciting news for fitness enthusiasts, but also for the commercial real estate sector. Avi Behar, Chairman of The Behar Group, a prominent Canadian commercial real estate firm, commented on the potential impact.

“HOTWORX’s entry into the Canadian market presents an exciting opportunity for the commercial real estate sector. Their compact studio model is well-suited for both urban centres and suburban locations, offering landlords a unique, high-traffic tenant that can revitalize retail spaces. We anticipate strong interest from property owners looking to diversify their tenant mix with this innovative fitness concept.”

Strike action shuts Canadian rail lines, impacting retail supply chains [Interview]

Photo from CN website

With Canada’s railway system grinding to a halt due to a labour dispute, Canadian business groups are worried about the massive impact this is going to have on the national economy.

Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. locked out 9,300 engineers, conductors and yard workers on Thursday after the parties could not come to a new contract agreement before the midnight deadline.

A report by the Conference Board of Canada suggests a two-week rail disruption would result in a $3 billion loss in nominal GDP this year in Canada.

The loss would be felt by both households, with a $1.3 billion loss in labour income, and businesses, with a $1.25 billion loss in corporate profits, said the Conference Board. 

Gary Newbury

Gary Newbury, a retail supply chain expert, strategic advisor and delivery executive with RetailAID, said It is clear, the public do not understand how integrated the rail mode of transportation is in getting stuff onto their local retail shelves, unfortunately, they are about to have an armchair lesson.

“The rail companies have spent the last few days refusing various categories of goods (perishables, hazardous et al) onto their networks to avoid being left holding them during the lock-out,” he said. 

“Frankly, at short notice, the road transportation network simply does not have the surge capacity to cope with the sheer scale of volume that railroads shift across the country everyday (estimated $1 billion/daily) and with a harvest looming, and retailers doing their final moves for peak trading, there will be an almighty fight between categories of shippers to secure capacity to get their products to market. By the end of the weekend, road freight charges are set to escalate rapidly, not dissimilar to the situation that container prices did during the pandemic.

“From a retail point of view, this development will be devastating for their “just in time” logistics. Not dissimilar to when the ports were on strike, the implications will only be much more severe with stock either held at port with limited options to move from port onto the road network, or staged on cross country routes, now inaccessible. Inbound container ships may be held “at sea” as there will not be enough capacity to process their freight, which means even if the strike is called off over the next week, there will be a delay before the normal flows resume. For each week of delay, it could take four to six weeks for the flow to resume.”

Newbury said moves between major cities will become hampered very quickly as a significant proportion of freight is moved via rail which is low cost and reasonably reliable.

“Very soon shelves of perishables will run dry, promotions will cease, prices may start to rise sharply and we see retailers taking the opportunity to clear their excess stock held in their warehouses to fill the gaps on the shelves,” he added.

“The challenge for retailers and consumers alike is to keep a calm head and trust the railroad companies and unions will be persuaded to land on a negotiated settlement and resume operations, however, if this has not happened by early next week, and positions are hardened by the other party’s negotiating position, the country could be looking at severe challenges with food, healthcare, fuel and heating oils, essential maintenance items affecting the whole population, particularly those fixed and low-income households, and the most vulnerable in our society.”

Dan Kelly

The complete shutdown of Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) operations will have a massive impact on Canada’s economy, small businesses and consumers, said Dan Kelly, President and CEO of the Canadian Federation of Independent Business.

“CFIB has already been hearing from businesses concerned about not getting essential shipments of aviation gas for forest fighting equipment, manufacturing inputs, vehicle parts, retail products, and agricultural equipment,” he said.

“Not only will the work stoppage negatively affect shipments of raw materials and goods essential for small business operations, but it will also lead to a decreased on-shelf availability of consumer products, including grocery and drugstore essentials and even baby formula. Thousands of commuters in Canada’s three biggest cities will be affected as well. Some small businesses are already reporting they will need to halt operations as they will no longer be able to receive critical inputs or meet their contractual obligations to customers.

“Small businesses will be left with very few alternatives, especially as trucking capacity is already strained and shipments are now stuck in the system. And as many businesses are already very weak due to increased post-pandemic debt, weak demand and dramatically higher operating costs, this couldn’t come at a worse time. 

“We’re calling on the federal government to intervene immediately by introducing binding arbitration or enacting back-to-work legislation. Longer term, Canada needs a better way of addressing labour disputes for critical supply chain industry players.”

The Conference Board of Canada has modeled what the potential impacts of a two-week stoppage would be on Canada’s overall economy. 

Key insights include:

  • Mining, agriculture, manufacturing take the brunt of the hit among goods producing industries, while wholesale trade and transportation suffer the bigger losses among service producers
  • Canada’s trucking industry is already struggling with congestion and a shortage of drivers, making it difficult for Canadian importers and exporters to find alternate transportation if rail stoppages occur

‘Lower economic activity would also erode government revenues. Federal government revenues would fall $391 million while aggregate provincial and territorial government revenues would be eroded by $533 million,” said the Conference Board report.

“The potential impacts are widespread across industries. Mining, agriculture, manufacturing take the brunt of the hit among goods producing industries, while wholesale trade and transportation suffer the bigger losses among service producers. The impact on transportation goes beyond rail since port traffic, trucking and other segments are highly dependent on rail. 

A two-week strike would reduce Canada’s GDP by 0.1 per cent this year. If the strike were to last twice as long, the negative economic repercussions would more than double, forcing Canadian exporters and other industry players into more substantial production cuts. A four-week strike could lower GDP by nearly $10 billion in 2024, and result in 49,000 job losses on average in the year. Our economic outlook for Canada in 2024 is weak, with much of the support for any positive growth relying heavily on trade.”

Earlier this week, the Canadian Chamber of Commerce, the Business Council of Canada, the Canadian Federation of Independent Business and Canadian Manufacturers & Exporters released a joint statement calling on the federal government to take immediate action to ensure the continuation of rail services. 

“The Government of Canada has a responsibility to protect the Canadian public and maintain national security, and it is time to act decisively to fulfill that obligation,” it said.

“Under section 107 of the Canada Labour Code, the Minister of Labour can refer the dispute to the Canada Industrial Relations Board (CIRB) for binding arbitration and prohibit a strike, lockout or end any ongoing stoppage pending a resolution. Alternatively, the government can also reconvene Parliament and introduce back-to-work legislation. 

“This is not about siding with either party; it is about standing up for Canadians. The federal government must show leadership and act before our trains – and with them, our economy – grind to a halt. Otherwise, the steep price of inaction will be paid by Canadian families, workers, and businesses.”

A recent CME survey of 226 manufacturers revealed the destructive impacts that a nationwide rail stoppage will have on Canada’s industrial economy:

  • 66 per cent of manufacturers said a strike will have severe consequences on their operations.
  • 92 per cent of manufacturers expect delivery delays, 76 per cent expect to face increased costs, 57 per cent expect reduced sales and 49 per cent say it will reduce competitiveness.
  • Manufacturers would incur an average financial impact of $275,000 each day of a stoppage (combined decreases in revenues and increases in expenses).
  • 77 per cent of manufacturers believe these labour stoppages have negatively influenced foreign investors’ views of Canada.
  • 88 per cent of manufacturers support federal government intervention to prevent strikes at critical infrastructure sites, including railways.