Air Canada strike would significantly disrupt supply chains, business groups warn

Canadian Chamber of Commerce says impact of a labour disruption by pilots would be far-reaching

Business groups have expressed “deep concern” over the looming pilot strike at Air Canada, which they said would significantly disrupt Canada’s supply chain.

A labour disruption would not only affect the thousands of passengers the airline flies daily but also its cargo operations, Air Canada has said.

In response, the Canadian Chamber of Commerce wrote to federal labour minister Steven MacKinnon on Wednesday, warning of the impact this would have on businesses’ ability to deliver goods to market on time.

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“The potential for a labour disruption is alarming, given the wide-reaching implications it would have on Canadians, the nation’s economy, supply chains and our global reputation,” said the letter signed by 41 business groups and 53 local chambers of commerce.

Signatories include the Canadian Association of Importers and Exporters, Canadian Federation of Independent Business, Retail Council of Canada, along with various industry associations, representing companies in the resource, energy, retail, and food sectors.

The groups say the impact of a labour disruption at Air Canada will ripple throughout the economy, affecting Canadian consumers, employees and businesses.

Air Canada’s cargo network is important for the import and export of critical, time-sensitive goods, they said. These range from vaccines and medical supplies to agriculture and perishable food products; parts and machinery for small- and medium- sized manufacturers. The letter also emphasized that Air Canada Cargo is responsible for shipping radioactive isotopes both domestically and internationally. The isotopes have a 48-hour lifespan and are crucial in treating cancer patients.

“A disruption in this service, however short, would be devastating,” the business groups said, “as no other means of transport can meet the stringent time requirements for these products.”

Air Canada and Air Canada Rouge operate close to 670 daily flights on average carrying more than 110,000 passengers within Canada or internationally.

The airline has said that Air Canada Cargo carries perishable or live commercial goods, components for manufacturers and other time-sensitive items in the belly holds of its aircraft and air freighters every day.

The company said Monday that it has already begun limiting acceptance of some of these goods due to average shipment timelines.

The letter noted that the timing of this potential strike could not be worse, given the recent labour disputes that paralyzed Canada’s tpilot, adding that in the last year there have been disruptions, or threats thereof, at ports in Montreal and British Columbia, the St. Lawrence Seaway, the Canadian Border Services Agency and WestJet Airlines Ltd.

They said that international partners of Canadian businesses will begin to seek permanent alternatives if they are unable to deliver goods to market on time.

The groups urged the federal government to “take decisive action” and “be prepared to act in advance” where a neutral arbitrator can resolve any outstanding issues.

• Email: dpaglinawan@postmedia.com

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