Agriculture groups speak on rail disruption

When a rail disruption went into effect between Canada’s Class I railways (CN & CPKC) and the Teamsters Canada Rail Conference union at 00:01 ET on August 22, many agriculture groups continued to speak out. By August 23, the same industry groups welcomed government action.

In a statement on August 23, the Canola Council of Canada (CCC), Canadian Canola Growers Association (CCGA) and Canadian Oilseed Processors Association (COPA) said they were in approval of the federal government invoking section 107 of the Canada Labour Code to order CN, CPKC and the Teamsters Canada Rail Conference to final binding arbitration and a resumption of rail service. “Lost exports of canola seed are currently estimated at approximately $11 million per day and halting canola processing will cost the industry approximately $20.5 million per day in lost sales of canola oil and meal, which will reverberate throughout the canola supply chain,” said an earlier statement on August 22.

Grain Growers of Canada (GGC) also raised alarm on August 22 about the potential shutdown, estimating the initial impact of the dual work stoppage by both of Canada’s major railways would cost grain farmers over $43 million a day in the first week alone, with losses escalating in following weeks. “Canada is home to over 65,000 grain farmers whose crops account for $35 billion in exports. With grain elevators situated on railways, growers rely on the network to market and sell their grain. With no viable alternatives to rail, the delays will result in lost sales, degraded grain quality, and a substantial loss of market confidence,” said the statement. The GGC welcomed the government’s directive for binding arbitration in a statement the following day.

The Canadian Federation of Agriculture (CFA) also made a statement on August 23, expressing their appreciation that the Minister of Labour acted in the best interests of Canadians, including farmers. “While there will be residual impacts on farmers from the gradual shutdown of service in the lead up to the lockout and the complete shutdown on Thursday, there is no doubt that a prolonged nationwide disruption of rail service would have severely impacted Canadian farmers and the Canadian economy for weeks and months to come,” said the statement. “Our hope is that rail service will be fully restored as soon as possible, and that the CPKC work stoppage is also resolved quickly to avoid the severe consequences that a prolonged disruption will cause.”