Fertilizer Canada calls for federal interference in rail dispute
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A train of grain cars stops at Cargill's elevator near Nesbitt, Man. Photo: Alexis Stockford
The main voice for Canada’s fertilizer industry has joined the grain companies, producer groups and other organizations calling for the federal government to step in before rail shipment grinds to a halt.
In a release Aug. 20, Fertilizer Canada called for federal intervention on the potential work stoppage on Canada’s two major railways. The industry group would like to see binding arbitration that would stop both strike action on the part of the union and lockout action on the part from the railways from going forward.
“We can no longer patiently wait for a resolution,” Fertilizer Canada CEO Karen Proud said. “The federal government must protect Canada’s economy and food security by ordering binding arbitration.”
The labour dispute between the Teamsters Canada Rail Conference union and both Canadian Pacific Kansas City and the Canadian National Railway threatens to explode this week. Both railways have issued lockout notices starting Aug. 22. On Aug. 18, the teamsters union issued its strike notice to CPKC, also starting Aug. 22.
“Each and all of the TCRC’s demands remain outstanding at this point in time,” the union said in an online statement published Aug. 18.
Fertilizer Canada estimates that a work stoppage would cost their sector $55-63 million in lost sales a day, “not including logistical and operational costs.”
“In the last seven years, Canadian supply chain labour disruptions have cost the fertilizer industry nearly a billion dollars,” Proud said. “These stoppages are doing immense damage to our reputation as a reliable trading partner. Our customers, who rely on Canadian fertilizer products, are being forced to turn to our competitors in Russia, Belarus, and China. We can’t afford for our railways to shut down, and we can’t afford a passive approach to our supply chains any longer. We need long-term solutions.”
The impact has already been felt, the industry group said. Last week, railways announced that shipment of certain more volatile materials, which included some ammonia products, were being curtailed in anticipation of a potential stoppage. Fertilizer Canada estimates that about 75 per cent of fertilizer in Canada is transported via rail.
Numerous provincial and national farm organizations have called on their members and other members of the public to sign a letter to Canadian Labour and Seniors Minister Steven MacKinnon. The #StopTheStrike campaign also urges the government to invoke binding arbitration under section 107 of the Canadian Labour Code.
“This will provide needed certainty to Canadian farmers and shippers, and their customers around the world,” the letter reads, in part.
The three provincial organizations representing rural municipal governments in the Prairie provinces have launched similar concerns and calls for action.
