'Serious damage': Businesses warn of looming layoffs, loss of sales as rail disruption drags on
                                                                             
                                                                            Businesses are warning of looming layoffs, lost revenue and a hit to  Canada’s reputation, as rail disruptions drag on in the country.
                                                                            
                                                                            A coalition of 39 industry associations wrote a letter to Prime  Minister Justin Trudeau on Tuesday, calling on him to “work urgently”  with First Nations and police to bring the blockade to a peaceful end.
                                                                            
                                                                            “The damage inflicted on the Canadian economy and on the welfare of  all our citizens mounts with each hour that these illegal disruptions  are allowed to continue,” the coalition said, which represents  automotives, mining and numerous other industries.
                                                                            
                                                                            While the members said they share the government’s commitment to reconciliation with Indigenous groups, the blockades “inflict  serious damage on the economy, leaving countless middle-class jobs at  risk, many of them in industries that must get their goods, parts, and  ingredients to and from market by rail.”
                                                                            
                                                                            “In addition to disrupting domestic and global supply chains, the  blockades undermine Canada’s reputation as a dependable partner in  international trade,” they said in the letter.
                                                                            
                                                                            The rail blockades sprung up on Feb. 6 as Indigenous groups and  activists across the country protested in solidarity with the hereditary  Wet’suwet’en chiefs that are opposed the Coastal GasLink project in  British Columbia. The hereditary chiefs oppose the pipeline through  their traditional territory, though it’s received approval from elected  band councils.
                                                                            
                                                                            Meanwhile, the national chief of the Assembly of First Nations called  for calm and constructive dialogue to ease tensions. National Chief  Perry Bellegarde said governments and industry need to give the time and  space to work with the Wet’suwet’en.
                                                                            
                                                                            “We say we want to de-escalate and we want dialogue,” he said. “And I  say our people are taking action because they want to see action — and  when they see positive action by the key players, when they see a  commitment to real dialogue to address this difficult situation, people  will respond in a positive way.”
                                                                            
                                                                            The rail stoppages has forced Via Rail and Canadian National to halt  its operations for more than a week, bringing a key artery of Canadian  transportation infrastructure to a halt. On Tuesday, Via Rail said it’s  preparing to resume part of its passenger rail service.
                                                                            
                                                                            Many businesses executives are already counting the cost of the rail paralysis.
                                                                            
                                                                            Dennis Darby, CEO of Canadian Manufacturers and Exporters, 
estimates  around $425 million of manufactured goods is sitting idle as shipments  are stalled, based on Statistics Canada numbers and rail usage estimates  from Canadian National Railway Co. and Canadian Pacific Railway Co.
                                                                            
                                                                            “We’ve talked to a number of members here in Ontario and many of them  said if (the blockades) extend into that two-week range, most companies  will have to start temporary layoffs and cutting shifts, because we  just don’t have the inventory,” Darby said during a press conference in  Toronto on Tuesday.
                                                                            
                                                                            Mississauga, Ont.-based Maple Leaf Foods Inc. is also  facing escalating costs as it tries to get its perishable products  shipped out in time, according to its president Curtis Frank.
                                                                            
                                                                            “While it is true that we have already begun to move loads by truck  wherever we can, the fact of the matter is that road transportation is  becoming harder and harder to secure every day,” he said at the press  conference.
                                                                            
                                                                            Just under a third of Maple Leaf’s revenue is dependent on the  movement of perishable products through the rail network in some way,  Frank said.
                                                                            
                                                                            Other industry executives underscored the need to get infrastructure projects built in the country.
                                                                            
                                                                            “It hurts, because it suggests you can’t get anything done in  Canada,” Steve Laut, executive vice-chairman of Canadian Natural  Resources Ltd., told the National Post in an interview Tuesday. “And  it’s hurting investment across the board.”
                                                                            
                                                                            “It’s about the pipelines, but it’s also not about the pipelines —  it’s about a number of other issues that Canadians have not addressed  for a long time.”
                                                                            
                                                                            Agriculture industry groups have also warned that recent blockades  would deepen the financial pain felt by farmers after a dismal  harvesting season.
                                                                            
                                                                            “These new blockades are once again hampering the ability for farmers  to get their products to port, especially those in Western Canada,” the  Canadian Federation of Agriculture said in a written statement Tuesday.
                                                                            
                                                                            The protests could put additional pressure on the  Canadian economy at a time when the Canadian economy remains vulnerable  after narrowly avoiding a contraction in the fourth quarter of 2019.
                                                                            
                                                                            Finance Minister Bill Morneau, who is preparing to  release the federal budget in coming weeks, has already warned that the  spread of the coronavirus could weaken economic output. Slumping  Canadian manufacturing sales in December could add to those woes, while  blockades threaten to further depress business investment.
                                                                            
                                                                            “We see that the blockade does have real economic impacts,” Morneau told reporters on Tuesday.
                                                                            
                                                                            Nathan Janzen, senior economist at RBC Economics, said that the  blockades may result in a two or three tenths of a per cent drop in the  first quarter GDP, with an expected reversal in the second quarter.
                                                                            
                                                                            However, with large disruptions such as strikes, the manufacturing  industry usually experiences a “significant” bounce back. “You’re  delaying activity but not losing it altogether in a lot of cases,” he  said.
                                                                            
                                                                            “You build up inventory for a while and eventually a lot of that  production is going to be backloaded. You lose production in the near  term but maybe then you add shifts temporarily to make up for lost  production when you regain transportation capacity.”
                                                                            
                                                                            CME’s Darby hopes that the government can reverse the declines in  Canada’s industrial economy. “I hope very strongly that the government  will be able to come up with a long-term solution. It’s not about  necessarily just solving this issue today about this particular  blockade. It’s about how to give manufacturers, or any industry,  predictability.”
                                                                            
                                                                            The right to protest is “part of the Canadian history,” but the  government must step in because 
the protests are “hurting our economy,”  he said.
                                                                            
                                                                            
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