Grain Shippers Call for Immediate Action to Avoid Rail Strike
12 Agosto 2024 - 3:21PM
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