Another week brings another potential strike, this time by the Grain Workers Union (GWU), which, after a recent vote, will be in a legal strike position starting at 7:00 am Pacific Time on September 24th. “This will be another devastating blow to agriculture trade. A strike would see approximately 650 workers fully shutting down all major grain exporting terminals in Vancouver,” stated Daryl Fransoo, Chair of the Wheat Growers Association.
The timing of this strike could not be worse. Exporters are currently working hard with Chinese importers to move critical canola shipments before China retaliates against tariffs on EV’s, aluminum, and steel. The disruption would not only affect trade with China but would also impact shipments to other parts of the world, as vessels arrive in Vancouver to be loaded. Fransoo added, “These ongoing strikes have both immediate and long-term consequences. Vessel demurrage and cancelled contracts, with vessels diverted to other exporting nations, are immediate impacts. Long term, our reputation as a reliable supplier is being tarnished, and history shows this will affect future sales. The entire value chain, from exporters to producers, will feel the negative effects.”
“We have numerous independent unions on the waterfront that can disrupt the supply chain at any time,” commented Gunter Jochum, President of the Wheat Growers Association. Jochum further explained, “Under Clause 87.7 of the Canada Labour Code, grain is deemed essential to be loaded on vessels, but this clause does not apply to the GWU. We are efficient at producing the world’s highest quality grains and oilseeds, yet the government continues to allow these supply chain disruptions and fails to address the changes needed to grow this sector.”
Canada is the fifth-largest food exporter in the world, with agriculture exports valued over $99 billion in 2023. The success of Canada’s agriculture sector and its contribution to the nation’s GDP depend on the ability to reliably export to global markets. Fransoo closed by asking, “When will this government wake up and make all grain movement from ports an essential service?”
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