The Canadian Federation of Independent Business says one in four small business owners in the country has been negatively affected by the rail blockades and another half of them expect to feel the impacts soon.

A survey by the organization said affected businesses have lost an average of $60,000 since the start of the blockades.

“The continued disruption of rail service is quickly becoming a crisis for small businesses,” said CFIB president Dan Kelly. “Many business owners across the country are telling us they have already had to suspend operations, lay off staff or ration supplies. Many are in danger of losing important contracts to other international competitors and they worry about how this will hurt their reputation with clients going forward. While there are no easy answers to this complex issue, the risks of inaction are significant too.”

“This situation could have consequences for small businesses and Canada’s economy as a whole that extend well beyond the blockades,” said Marilyn Braun-Pollon, CFIB vice-president, Western Canada and Agri-business. “In addition to being concerned about their own reputation, 97 per cent of Alberta business owners (90 per cent nationally) are telling us they worry about how the blockades will affect investor confidence in Canada. When you analyze the data by sectors, we found 97 per cent of respondents in the Natural Resources sector and 95 per cent in the Agriculture sector said they are concerned the blockades will affect investor confidence in Canada.”

The CFIB said many small businesses depend on rail service to receive supplies and get their products to market. They typically have limited resources and cash reserves to weather a prolonged service interruption. In the survey, 62 per cent said they are very worried about the impacts of the blockades on their business. Nine in 10 business owners said that the federal government should make it a priority to work with the provinces and law enforcement agencies to ensure rail service is resumed.

 The CFIB offered the following examples of how the blockades are hurting small business: 

  • An Alberta company is waiting for $750,000 in equipment from Germany, stalling their operation;
  • A business owner who depends on importing and exporting goods has lost over $80,000 and had to lay off all staff as overseas shipping rates have tripled in price;
  • Agriculture businesses are unable to get their product to market, get paid, clear space in grain elevators for new product and receive fertilizer for this year’s planting;
  • A sign producer for retailers has missed deadlines and dealt with frustrated customers who have had to open their stores without a sign;
  • A business reports that shipments of vital medical equipment for patients have been stopped;
  • A new car dealer in St. John’s, NL has his needed inventory stuck on the rails before it can be put on a ship in Halifax; and
  • A restaurant renovation has been stalled as needed construction materials to finish the job are not moving.
     

“Ultimately, Canada needs a clear path forward to balance economic development, environmental policy and Indigenous land rights to avoid repeating this situation and restore investor confidence,” said Kelly.