Contract talks between workers and Canada’s two major railways were continuing Thursday, as national ag groups demanded the federal government act now to end the dispute.
CN Rail and CPKC locked out workers just after midnight today, with farmers and the Canadian economy now grappling with an unprecedented simultaneous shutdown of both railway networks.
In a release today, Teamsters Canada Rail Conference – the union representing the more than 9,000 CN and CPKC workers now off the job – admitted that even after months of negotiations, the two sides remain far apart. Regardless, the union said it remains at the table with both companies trying to hammer out a new collective agreement.
The stakes are high, with national economic losses estimated at nearly $350 million for every day the lock out continues.
Meanwhile, the shutdown comes at the worst possible time for Canadian farmers, with the harvest now ramping up across the Prairies – a time when rail transportation is critical in moving crops from the interior to the west coast ports for export.
The Grain Growers of Canada, which represents over 65,000 farmers nationwide, said the initial impact of the dual rail stoppage will cost grain farmers over $43 million per day in the first week alone, with losses expected to climb to $50 million/day the week after and beyond if the stoppages continue.
“The total shutdown of Canada’s two national railways is an unprecedented crisis for the grain industry,” said Kyle Larkin, Executive Director of the Grain Growers of Canada. “With work stoppages at both CN and CPKC, our entire supply chain is at risk. This disruption is happening at the worst possible moment, during the start of harvest season, when our farmers are most dependent on our rail network.”
According to the Agricultural Producers Association of Saskatchewan, grain elevators in that province are already rationing or no longer accepting farmer deliveries of grain. Industry estimates that primary elevators will reach storage capacity after about 10 to 12 days of producer deliveries, APAS said. With no delivery opportunities available, farm families will face enormous pressures managing their finances and on farm grain storage to avoid significant economic losses, it added.
"The real issue here is the domino effect these disruptions unleash, which can be catastrophic. Every day of work stoppage translates to weeks of recovery, magnifying the financial strain on farmers during a crucial time of the
year,” said APAS President Ian Boxall. "The strategic importance of rail transport in our industry cannot be overstated. We must ensure that grain receives the priority it deserves to avert economic risks to farmers, rural communities, and to prevent spoilage risks associated with delayed shipments.”
Even for just a single Prairie crop, the potential losses are staggering. The Canola Council of Canada said lost exports of canola seed will cost approximately $11 million/day and halting canola processing will cost the industry approximately $20.5 million/day in lost sales of canola oil and meal.
Source : Syngenta.ca