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

A devastated neighbourhood in west Jasper, Alberta on Monday, Aug. 19, 2024. Wildfire caused evacuations and widespread damage in the National Park and Jasper townsite. (Amber Bracken / The Canadian Press)

 

Canadian National Railway will be moving its rail operations from Jasper, the town in the national park of the same name that was recently devastated by a wildfire, to Hinton, Alta., says the union representing workers. 

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Hinton, which has a population of less than 10,000, is about 75 kilometres east of the Jasper townsite where the CN terminal is currently located. 

Teamsters Canada Rail Conference on Thursday told CTV News Edmonton it was informed of the decision on Monday during a meeting. 

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, he 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," said Ray Donegan, the union's general chairperson for western Canada. "Nothing like kicking somebody when they're down." 

Jasper's mayor echoed the sentiment: "We recognize that business decisions are driven by many factors, but the timing of this announcement intensifies and deepens the pain already felt throughout Jasper. The loss of a major employer like CN in a small town creates immeasurable challenges, none of which can be underestimated," Richard Ireland said in a written statement. 

CTV News Edmonton has reached out to CN for comment. The company has not yet confirmed any details. 

According to Donegan, CN is looking to relocate to an area east of Hinton but 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," he 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."

Province to provide $149M for recovery 

The Alberta government will provide $149 million for Jasper's recovery, the province announced on Thursday. 

"This critical funding is one piece in helping Jasper recover and rebuild and we know we can count on our provincial partners for continued support in this area," Ireland said in a statement expressing his gratitude. 

“We are committed to providing the necessary support for recovery in Jasper and all Alberta communities affected by wildfire this year," Public Safety and Emergency Services Minister Mike Ellis said in the news release. 

"This funding will cover critical areas of need, from uninsurable infrastructure damage to emergency operations costs, ensuring communities can recover swiftly and safely.”

The funding will come from the province's Disaster Recovery Program. 

Under the program, 90 per cent of eligible expenses are covered by the province, while the municipality's remaining share may be submitted for federal reimbursement. 

It 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. 

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 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. 

With files from CTV News Edmonton's Chelan Skulski