Emokhare Paul Anthony
Daily Herald
The Western Grain Elevators Association (WGEA) is the latest group calling on the Canadian National Railway, Canadian Pacific Kansas City Railway, and Teamsters Canada Rail Conference to come to an agreement and ensure a rail strike does not occur this fall.
On Tuesday, the association issued a press released calling on all parties to “put posturing and politics aside” to prevent a rail strike from occurring.
“This rail strike is coming at the worst possible time of year, right before the start of harvest,” WGEA Executive Director Wade Sobkowich said in a press release. “To make matters worse, both CN (Canadian National Railway) and CPKC (Canadian Pacific Kansas City) will shut down at the same time, stopping virtually all of Canada’s domestic and export grain flow.”
In their press release, the WGEA said the strike would have happened in May 2024 as expected were it not for a decision by the Minister of Labour that sent the matter to the Canadian Industrial Relations Board. The organization said a work stoppage at any time inflates the cost of food, imposes cost on grain handlers and farmers, and damages Canada’s trade relationships.
“In anticipation of the last strike the grain exporters slowed down sales and warned customers of the upcoming disruption, which had a cost and reputational impact at the time,” reads the press release. “Now, the grain industry is facing a second disruption in rail service for the same dispute.”
The organization aid its grain elevators are beholden to a monopoly service because of their location on CN or CPKC lines, meaning they do not have competitive options if a strike occurs.
Sobkowich said the CN, CPKC, and the Teamsters Canada Rail Conference (TCRC), which represents roughly 6,000 conductors, yard coordinators, and locomotive engineers across Canada, need to recognize a strike will severely damage Canada’s reputation as a food provider.
“The impacts will be felt mostly by Canadian consumers at the grocery store, both in terms of price and supply” Sobkowich said. “The world needs Canada’s grain now more than ever, and it is unconscionable that anyone would leverage the current domestic and global circumstances to benefit their individual interests.”
The WGEA is an association of Canadian grain businesses. The group handles more than 95 per cent of Western Canada’s bulk grain movements.
In a media release on Aug. 9, the TCRC said workers at both rail lines will be in strike position as of Aug. 22. The union has promised to serve a 72-hour strike notice to both companies in case of job action.
In an open letter to Labour Minister Steve MacKinnon posted to the TCRC website, the TCRC leadership wrote that all parties are scheduled to travel to Montreal later this week for another round of bargaining.
The Agricultural Producers Association of Saskatchewan (APAS) has also urged all parties to reach a prompt resolution and avert any disruptions in rail service.
In a press release sent out Aug. 9, APAS called on the federal government to “explore all options to prevent simultaneous work stoppages at both railways, to avoid financial damage to Saskatchewan’s agricultural producers, and to safeguard our trading relationships with international customers.”
APAS said a strike action would cause billions of dollars in agricultural export losses.
“In Saskatchewan, farmers rely heavily on the timely transportation of grain to ports, with an average distance of 1,850 kilometres by rail to market destinations,” reads the press release. “As harvest season approaches, a rail disruption could see farmers face delayed payments, as well as impact storage of on-farm inventory, jeopardizing producers’ cash flow and financial obligations.”
According to APAS, Canadian grain exports totaled $36.2 billion in 2023. Saskatchewan made up more than half of those exports, with 94 per cent of that grain shipped by rail.
editorial@paherald.sk.ca
