CIAC Welcomes Senate Committee Report on Strengthening Canada’s Supply Chain Reliability 

The Chemistry Industry Association of Canada (CIAC) welcomes the Senate Standing Committee on Transport and Communications’ report on labour disruptions and supply chain reliability, which strongly reflects recommendations CIAC presented to the committee during its study. 

The report recognizes the critical role that Canada’s trade and transportation infrastructure plays in supporting a trade-dependent economy and recommends measures to improve supply chain reliability while respecting collective bargaining rights. More than 85 per cent of chemicals and plastics produced in Canada move by rail and there is no Plan B when they stop moving. When chemistry and plastics stop moving the impacts are felt downstream in industries including food manufacturing, mining, forestry, automotive manufacturing, energy, metal refining, and defence. 

“We are encouraged to see the committee acknowledge the severe economic impacts that disruptions at ports and railways can have across Canada’s economy,” said Greg Moffatt, President and CEO of CIAC. “The committee’s findings reinforce the importance of reliable transportation networks for Canada’s industrial supply chains. ” 

“The report advances practical recommendations that would improve transparency, strengthen dispute resolution processes, and better protect Canada’s economic competitiveness.” 

CIAC is particularly encouraged by the committee’s recommendations to: 

  • Establish a dedicated framework for addressing major supply chain disruptions through a Supply Chain Reliability Act and/or amendments to the Canada Labour Code; 
  • Strengthen government oversight and dispute resolution mechanisms during high-impact labour disputes; 
  • Modernize provisions related to essential services and maintenance of activities; and 
  • Clarifying, section 107 of the Canada Labour Code, including establishing clear criteria and economic harm thresholds for government intervention. 

“Reliable and predictable trade and transportation systems are essential to Canada’s reputation as a dependable trading partner and investment destination,” added Moffatt. “We look forward to working with the Government of Canada and stakeholders across the supply chain as reforms to collective bargaining in critical transportation and trade infrastructure are considered.” 

Read the full report:  Keep Canada Moving: Labour, Management and Supply Chain in the Rail and Maritime Sectors