Planning to cross the border? Here's what to know about the possible strike

Businesses concerned about possible CBSA strike RBC economist Clair Fan explains how business could be impacted by the possible CBSA strike.

As the clock ticks on toward a strike at the Canadian border, a union spokesperson says the group remains in negotiations with the government.

They have until 4 p.m. Friday to make a deal.

"If a deal is not reached, a strike will take place," Pierre St-Jacques, spokesperson for the Canada Border Services Agency (CBSA) union, wrote in an email to CTVNews.ca on Thursday.

More than 9,000 Public Service Alliance of Canada (PSAC) members who work for the CBSA, including border guards, secured a strike mandate at the end of May, threatening to slow traffic through Canada's national entry points.

The union says it wants "fair" wages comparable to other law enforcement agencies in Canada, changes to its workers' retirement plans, and "flexible" online and remote work options.

"We are still hopeful that we can reach an agreement to avoid strike action, but the window is closing if the government wants to avoid any potential delays at Canada’s borders," wrote St-Jacques.

Claire Fan, an economist with the Royal Bank of Canada in Toronto, said in an interview with CTV's News Channel on Thursday that she expects the potential strike to have a spillover impact. She says auto manufacturers could see the biggest economic hit. Tourism and restaurants could also be hurt if travellers call off their trips as the travel season starts to ramp up.

Up to 60 per cent of goods trade across the border between Canada and the United States was done with trucks in 2023, she noted.

Despite the potential economic impact of a strike, it wouldn't be a full shutdown of the border since 90 per cent of front-line border officers are considered essential workers and can't stop working during a strike. "That in itself is good news," Fan said. "It means goods will still be able to move across borders for the most part."

Instead, border workers may implement work-to-rule efforts, which could cause delays with vehicles taking longer to pass through the border, Fan said.

In 2021, the union carried out a work-to-rule effort, slowing traffic into long lines of tourist and commercial vehicles waiting to cross. A deal was reached after an extended 36-hour negotiation.

"While the government fully respects the right of employees to gather and demonstrate lawfully, unlawful job action will not be tolerated," reads a Wednesday release from the Treasury Board of Canada Secretariat.

"Negotiation is a process of give and take. The government is prepared to make concessions, but there needs to be movement on both sides," it reads.

The latest GDP numbers indicate many businesses are holding more inventories in anticipation of potential disruptions to supply chains, among lessons they learned over the last few years, Fan added.

"Businesses are precautionarily holding inventories so potentially that could offset some of the impact," she said.

Jim Cooper, CEO of Canarm Limited, a ventilation company with its headquarters in Brockville, Ont., is worried about the impact of a strike. "The border is a critical link to us being successful as a manufacturer in Canada," Cooper said in an interview with CTV News. "We've got product crossing the border every single day of week.

The association of Canadian Manufacturers and Exporters (CME) estimates that about $3.1 billion in goods cross the Canadian border each day. Last year, cross border trade totalled $1.6 trillion, it says.

“We need the federal government to take a proactive approach to preventing these disruptions,” wrote CME president Denis Darby in a Wednesday news release.