Canadian rail stoppage looms

Grain shippers are calling on CN, CPKC, Teamsters Canada Rail Conference (TCRC) and the Canadian government to work together to avert a rail work stoppage that could begin as early as Aug. 22 if a negotiated settlement doesn’t occur. A work stoppage was narrowly averted in May when the government intervened, sending the matter to the Industrial Relations Board.

“For the grain sector, this rail strike is coming at the worst possible time of year, right before the start of harvest,” said Wade Sobkowich, executive director of the Western Grain Elevators Association. “To make matters worse, both CN and CPKC will shut down at the same time, stopping virtually all of Canada’s domestic and export grain flow.”

Sobkowich said Canada’s economy has suffered enough in recent years, and Canada must find a permanent solution to supply chain disruptions within its control, such as railway work stoppages.

Grain elevators situated on either CN or CPKC lines are each beholden to a monopoly service provider and do not have any competitive options in shipping grain to flour mills, grain processing facilities and feedlots both domestically and internationally, Sobkowich said, adding that “serious challenges with rail service have resulted in severe damage to Canada’s reputation with its customers, and are adding to inflationary pressures on food prices both here at home and abroad.”

“The TCRC, CN, CPKC and the federal government need to recognize that their action or inaction will have serious consequences,” he said. “The impacts will be felt mostly by Canadian consumers at the grocery store, both in terms of price and supply. The world needs Canada’s grain now more than ever, and it is unconscionable that anyone would leverage the current domestic and global circumstances to benefit their individual interests.”

The TCRC, which has indicated they will provide 72 hours advance notice in the event of any strike action, said the union’s focus remains on negotiating in good faith and reaching agreements at the bargaining table. The main sticking points are company demands, not union proposals, the Teamsters said. Both companies want concessions on issues pertaining to crew scheduling, rail safety, and fatigue management.

The rail companies told Progressive Railroading that the union has refused to bargain on the proposals they have set forth.

“We have proposed three different options to the union, which has refused to bargain and has just presented us with more demands,” CN spokesman Jonathan Abecassis toldProgressive Railroading. “We want a resolution to this conflict. That’s what we’re hopeful that all of this will lead to.”

Source: World Grain