CN moving Jasper operations is 'kicking somebody when they're down,' says union

After a century, Canadian National Railway will be moving its rail operations out of Jasper, the national park town that was recently devastated by a wildfire.

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The company confirmed to CTV News Edmonton on Friday the crew change point currently located in the Jasper townsite will be moved to the Dalehurst area, east of Hinton, by September 2025 at the earliest.

Hinton, with a population of about 10,000, is located 75 kilometres east of the Jasper townsite.

CN in a statement on Friday said the decision was made to reduce train stops between Edmonton and Blue River, B.C.

Teamsters Canada Rail Conference on Thursday said it was informed of the decision on Monday during a meeting.

According to the union's general chairperson for western Canada, CN does not yet own any land.

"We had discussions about a year ago. And there have been, over the years, discussions or talk about moving Jasper, but it really was a surprise," Ray Donegan told CTV News Edmonton.

"What they're telling us is they're doing this for operational efficiencies and we have difficulty seeing where they're going to get these efficiencies as a net result."

The change does not mean approximately 200 union workers currently living in Jasper – including locomotive engineers, conductors and brake workers – are out of a job, according to Teamsters.

However, Donegan said they do face great uncertainty over whether they'll be able to continue living in Jasper National Park, as does the town over the potential loss in year-round residents.

"They're just coming through with a catastrophic wildfire," Donegan said. "Nothing like kicking somebody when they're down."

'Another blow'

That sentiment was echoed by locals who consider the rail industry not only a significant part of the local economy but an industry with deep roots in Jasper's history, having played a major role in establishing it as a tourist destination.

"We appreciate that business decisions are made based on a multitude of factors. My concern is the impact that this decision, if it is carried through, will have on our community," Jasper Mayor Richard Ireland said on Friday.

According to him, the municipality was not consulted on the decision and only received advance notice of it on Monday.

Referring to the 200 workers who will be impacted, Ireland said, "Typically, these people support our community in so many ways. Of course, economically. As we come into to fall, it is our local residents who visit coffee shops and local retail stores and keep them operational during our slower, busier months.

"These are the people who support so many community leagues within the town. They provide coaching for minor sports. They work with our service groups or volunteers all over the place, as are their families. That impact on our community will be substantial … almost immeasurable."

Shelley Koebel, the owner of a laundromat and two coffee shops in Jasper – and, like Ireland, from a family of railroad workers – added, "That will be another blow that I don't think Jasper is ready for."

CN said its decision was made with "careful consideration" and that it is committed to supporting its employees through the transition.

"Jasper will always remain an important community for CN and our employees."

When a wildfire burned down about one third of Jasper's buildings at the end of July, CN's bunkhouse sustained smoke damage.

Since the town reopened in mid-August, the company has worked to restore it.

Province to provide $149M for recovery

As Ireland put it, Jasper had "quite a week of news… most of it exceptionally good and most welcome, and some of it disappointing and unwelcome."

On Wednesday, Canada's minister responsible for Parks Canada introduced legislation that would transfer full authority over local land planning and development for Jasper's recovery to the municipality from the national park agency.

The next day, the Alberta government announced it will provide $149 million for Jasper's recovery through the province's Disaster Recovery Program (DRP).

Both things, Ireland said on Friday, would help Jasper move quickly on rebuilding efforts.

"The sustainability of the business community (and) the ability for the community to rebuild in a timely manner is a concern," Koebel said.

Under the program, 90 per cent of eligible expenses – such as infrastructure damage and emergency operations costs – are covered by the province, while the municipality's remaining share may be submitted for federal reimbursement.

The DRP program does not cover costs, damage or loss that could have been covered by insurance.

The program funded wildfire and flooding recovery efforts in 2023, flooding recovery in northern Alberta in 2020, and wildfire recovery in Fort McMurray and the Regional Municipality of Wood Buffalo in 2016.

The town will also be asking the provincial government for budget funding for a few years in order to avoid drastically cutting services or hiking taxes.

The wildfire at the end of July burned down 358 homes and businesses, eliminating an estimated more than $2 million in rolling annual property tax revenue for the municipality.

Officials on Friday said they were in the process of reviewing potential temporary housing providers and had identified possible sites for such housing in Jasper's municipal boundary.

With files from CTV News Edmonton's Chelan Skulski and The Canadian Press