By Alice McFarlane

Western Canada’s Rural Municipalities Urge Federal Government to Ensure a Quick Resolution to Rail Labour Dispute

Aug 21, 2024 | 3:52 PM

As a nationwide labour dispute looms between Canada’s two major freight railways and the union representing workers at each, groups representing Prairie rural municipalities are speaking out about the impact on their communities.

Associations representing R.M.’s in Alberta, Saskatchewan and Manitoba believe a rail work stoppage would be harmful to Western Canadian agricultural producers, consumers and other industries crucial to rural communities.

The Rural Municipalities of Alberta (RMA), Saskatchewan Association of Rural Municipalities (SARM), and Association of Manitoba Municipalities (AMM) are urging Labour Minister Steven MacKinnon to order binding arbitration if the railways and union are unable to reach an agreement prior to the Thursday 12:01 a.m. deadline when labour disruptions would begin.

Even a short-term work stoppage will have massive impacts on the agriculture sector, which already struggles to access rail cars to move harvests to market.

SARM acting President Bill Huber said Canada’s Labour Code allows the minister to require binding arbitration for situations just like this one.

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“Both CN and CPKC provide Prairie farmers with critical access to markets. Without trains running, the livelihoods of thousands of producers are at risk. If Minister MacKinnon does not act on requiring binding arbitration, he and his government must be willing to live with the economic and social consequences the decision will bring across the Prairies,” Huber said.

RMA President Paul McLauchlin said across rural Alberta, producers of all sizes rely on access to rail to get their product to market. Even a short disruption in rail service may have a domino effect which could lead to long-term industry-wide impacts.

“From the perspective of Alberta’s rural municipalities, this is not simply a labour issue; it is an economic development issue, it is a community sustainability issue, it is even a food security issue,” McLauchlin said. “While I understand that the minister wants to allow the railways and union as much time as possible to negotiate, not stepping in to protect rural livelihoods and communities will escalate this from a labour dispute into a situation that puts entire rural communities and industries at risk.”

Much of the grain produced in the Prairie provinces is exported internationally, meaning that without rail access to international ports there are simply no alternative markets available for producers.

This creates significant issues locally through strain on grain-handling and storage facilities, as well as related to Canada’s international reputation as a stable and high-quality agricultural producer. If international customers are unable to trust the reliability and timeliness of Canada’s agriculture industry, they will begin to look elsewhere.

AMM President Kam Blight said agriculture is a sophisticated, complex, and internationally connected industry based on a complex worldwide supply chain. When one of the first ‘links’ in that chain is compromised, as would be the case if a rail work stoppage occurs, the impacts are widespread, in Manitoba, Canada and across the world.

“We are very concerned that a work stoppage will not only place several municipalities at risk in the short-term but will create a significant reputational and logistical challenge that could harm local communities in Manitoba and across western Canada for years to come,” Blight said.

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alice.mcfarlane@pattisonmedia.com

On X: @farmnewsNOW