By Alice McFarlane

Agriculture groups, government hope to avoid a CP Rail strike

Mar 15, 2022 | 4:39 PM

MELFORT, Sask. — As thousands of workers at Canada’s second-biggest railway threatened to strike this week, grain shippers are warning of the serious impact it would have on grain movement.

The Western Grain Elevators Association (WGEA) is calling on CP Rail and the Teamsters Canada Rail Conference (TCRC) to accelerate their negotiations to avoid a work stoppage, including agreement by both parties to binding arbitration if can’t be reached by the deadline.

WGEA executive director Wade Sobkowich said the disruption in rail service would have a devastating impact on the entire agriculture value-chain that has already suffered through drought, wildfires, flooding, blockades, COVID-19, record snowfall and extended periods of cold weather.

“Despite this year’s 35 per cent smaller than average crop due to drought, the railways have struggled to meet even half of our weekly demands for rail service the past few months,” Sobkowich said. “This imminent work stoppage at CP would take the situation from terrible to catastrophic, crippling the flow of goods throughout the Canadian economy.”

Rail service is essential to get grain off the Prairies to customers and ports across North America and globally. Drought and flooding cannot be avoided, but Canada must find a permanent solution to disruptions within its control, such as rail work stoppages.

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Serious challenges with rail service have resulted in irreparable damage to Canada’s reputation with its customers, according to Sobkowich.

“CP management and the TCRC need to recognize that their actions will have serious consequences across Canada if a work stoppage occurs and the impacts will be felt mostly by Canadian consumers at the grocery store, both in terms of price and supply,” he 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.”

Saskatchewan Agriculture Minister David Marit is worried about the impact on grain movement if the strike goes ahead.

“As everybody knows everything moves in and out of this province by rail, for the most part. We’re very concerned about it, and we’re watching it very closely,” Marit said.

The agriculture sector is already experiencing supply challenges. The Russia invasion of Ukraine has added an additional strain to the supply chain. Marit said the province will be reaching out to its federal counterparts.

“We had hoped the two parties would agree to binding arbitration and sit down and come to an agreement.” Marit said.

Fertilizer Canada president and CEO Karen Proud said its members are concerned with the potential strike.

“The agricultural sector is already experiencing supply challenges compounded by the war in Ukraine and cannot withstand anymore disruption to the supply chain without severe consequences for farmers, food security in Canada and worldwide, and the Canadian economy,” Proud said in a news release.

Meanwhile, Sobkowich said if an agreement can’t be reached the federal government should step in and impose a process for a reasonable resolution for both parties.

TCRC represents more than 3,000 unionized workers at CP including locomotive engineers, conductors and train workers,

A strike could begin immediately after midnight on Mar. 16.

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alice.mcfarlane@pattisonmedia.com

On Twitter: @farmnewsNOW