Grain shippers are calling on CN, CPKC, the TCRC and the Government of Canada to put posturing and politics aside for the good of Canadians to ensure a rail strike does not occur.

The strike would have happened in May 2024 were it not for a decision by the Minister of Labour to send the matter to the Canadian Industrial Relations Board. 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 a May strike, grain exporters slowed down sales and warned customers of the upcoming disruption, which had a cost and reputational impact at the time. Now, the grain industry is facing a second disruption in rail service for the same dispute.

“For the grain sector, this rail strike is coming at the worst possible time of year, right before the start of harvest, said Wade Sobkowich, Executive Director of the Western Grain Elevators Association. “To make matters worse, both CN and CPKC will shut down at the same time, stopping virtually all of Canada’s domestic and export grain flow.” Sobkowich opined that Canada’s economy has suffered enough in recent years, and Canada must find a permanent solution to supply chain disruptions within its control, such as railway work stoppages.

Grain elevators situated on either CN or CPKC lines are each beholden to a monopoly service provider and do not have any competitive options in shipping grain to flour mills, grain processing facilities and feedlots both domestically and internationally. Rail service is essential to get grain off the Prairies to customers and ports across North America and globally. Serious challenges with rail service have resulted in severe damage to Canada’s reputation with its customers, and are adding to inflationary pressures on food prices both here at home and abroad.

“The TCRC, CN, CPKC and the federal government need to recognize that their action or inaction will have serious consequences. The impacts will be felt mostly by Canadian consumers at the grocery store, both in terms of price and supply,” added Sobkowich. “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 imploring the parties to complete the negotiations in good faith, or submit to binding arbitration for a fair and reasonable resolution.

The WGEA is an association of grain businesses operating in Canada which collectively handle in excess of 95% of western Canada’s bulk grain movements. Its members account for roughly one fifth of bulk railway revenue in Canada and pay annual total freight of over one billion dollars.

Contact: Wade Sobkowich at (204) 942-6835 or wgea@mts.net