As of 00:01 ET on August 22, 2024, a disruption in rail service is in effect between Canada’s Class I railways (CN & CPKC) and the Teamsters Canada Rail Conference union.
As a result of this unprecedented work stoppage, service has ground to a halt, impacting all segments of the canola value chain. With farmers already harvesting crops in parts of the Prairies, this work stoppage could not come at a worse time for the grains sector. Grain elevators and oilseed processors are reducing capacity and curbing production resulting in delays in executing customer contracts and farmers are losing the ability to sell their canola which restricts their ability to cashflow their farm operations. This will further damage our global reputation as a reliable supplier and risks future exports and loss of market share to competitors.
Each passing day without rail service puts greater pressure on our sector’s ability to operate, risking a complete shutdown in a matter of days. 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.
The Canola Council of Canada (CCC), Canadian Oilseed Processors Association (COPA) and Canadian Canola Growers Association (CCGA) are deeply concerned about the detrimental impacts to farmers, exporters, processors, Canadian consumers and customers around the world.
The current situation was avoidable and has now reached a critical juncture. Given the urgency of the situation and lack of any meaningful progress through the collective bargaining process, the CCC, COPA and CCGA call on the Minister of Labour to invoke section 107 of the Canada Labour Code and bring swift resolution to this work stoppage through binding arbitration while suspending the ability for lockouts or strikes pending an agreement.