MOOSOMIN — As negotiations continue between the two largest railways in Canada and the union representing employees, temperatures are rising with labour action a real possibility soon.
A possible rail strike could bring the wheels of Saskatchewan grain literally to a halt, as some 9,300 workers from both Canadian National and Canadian Pacific Kansas City Southern have voted in favour of strike action unless a new labour deal can be reached. The contract between rail lines and union workers ended on Dec. 21, 2023, with no real traction several months later.
This proposed action caught the attention of the federal government, with Labour Minister Seamus O’Regan calling for an investigation into whether or not a work stoppage would affect the health and safety of Canadians.
Meanwhile, the Canadian Industrial Relations Board advised CN and CPKC that they intend to decide on the minister’s query on Aug. 9. However, if they don’t come up with a decision, the CIRB will issue another update to the railroads.
Before the dispute was referred to the CIRB, workers were poised to walk off the job on May 22, but no stoppage of work can occur until 72 hours after that Aug. 9 date, providing some semblance of certainty. With a somewhat early harvest season approaching, some groups are calling for immediate action to ensure the tracks are clear for producers entering the busiest season of their year.
“With the prospect of a large crop on the horizon, the potential rail service disruption could have critical repercussions, from delayed farmer payments to jeopardizing Canada’s reputation as a reliable global supplier,” said APAS president Ian Boxall. “It’s imperative that all parties involved recognize the high stakes and work collectively towards a solution. Our nation’s economic security and the livelihood of our farming communities depend on it.”
In the eyes of APAS, a looming labour dispute endangers not only the immediate economic health across Canada but also international trade.
“The simultaneous expiry of operating crews’ contracts at both Canadian Pacific and Canadian National railways presents an unprecedented challenge to our industry,” Boxall said.
“Without swift resolution, this standoff threatens not just our province’s agricultural sector heading into harvest season but the economic well-being of our nation. We must act now to ensure our farmers aren’t left bearing the brunt of this looming crisis.”
There’s also concern south of the border as several American agricultural groups reached out to O’Regan and other federal ministers back in May.
“A rail stoppage would lead to shutdowns or slowdowns of rail-dependent facilities resulting in devastating consequences to national and global food security. If a negotiated solution fails to emerge, we request that you and your Cabinet colleagues take immediate action to prevent serious damage to the Canadian and U.S. economies,” read part of the joint letter.
In an update dated July 12, the CPKC pointed to binding arbitration as a solution to the labour dispute.
“We know supply chain stakeholders would like certainty and predictability concerning a potential work stoppage. That is also why CPKC has proposed to the TCRC (Teamsters Canada Rail Conference) that we resolve this labour dispute through binding arbitration,” the CPKC said in their update. “We will continue providing stakeholders with the latest information as it becomes available.”
As for CN, they also realize the consequences of labour action, seeking to reach an agreement that’s fair for all.
“We recognize that the prolonged negotiations are creating uncertainty, and we are working towards providing as much predictability as possible to our employees, customers and partners,” noted CN in an update. “Since the beginning of the negotiations, our goal has always been and continues to be to negotiate in good faith with the TCRC to reach a mutually beneficial agreement that maintains safety and stability for our team, our customers, and North American supply chains.”
Raising awareness is key.
“It would be devastating. We have billions of dollars in the ground in Saskatchewan,” Boxall told the World-Spectator. “If we go to fall with the rail strike potentially, with both railroad deals coming to head this year, it’s a huge concern.”
He agreed the larger-scale effects of such action would be crippling to the industry.
“It would have ripple-down effects to almost every community in Saskatchewan,” he said. “We are driven by ag. If farmers can’t get products out, that will have huge effects on cash. On the other side of that, which might even be a bigger concern, honestly, is what happens to our trading partners? Every year, we have an issue with rail of some sort. At what point do they say, ‘You know what, Canada, you are an unreliable supplier of this product. I’m going to go somewhere else.’ Then that market’s gone. That is even a bigger fear than anything else.”
With trucking to port simply too expensive of an option, the railroads are a vital component of a producer’s life and livelihood.
“Steel on track is the cheapest way to ship anything in Canada, and it’s not just grain—it’s automobiles, it’s energy products, it’s everything,” Boxall said. “The railroads in this country are a huge driver to our economy, and the fact that we have some issue with them every year is frustrating.”
With a seeming ‘hurry up and wait’ scenario—everyone biting their nails for that magic Aug. 9 date—Boxall believes raising awareness of how essential rail is to Canada is vitally important.
“We need to raise awareness. I think we need all Canadians to understand how important the railways are,” he said. “Let’s get everyone talking about this: just about how important the railroads are to the economy in Canada, how important trade is to Canada, and that we be a reliable trading partner with the people that want our product. If we continue to have supply chain issues with them—whether that be rail or ports, whatever it is—they’re going to find that product somewhere else.”
Boxall noted not hearing any last-minute developments from the federal government—despite calls from several groups and fellow politicians across North America for action. However, when asked the big question ‘Do you think the dispute will get resolved before harvest?’ he’s siding with optimism.
“I’m optimistic that they will understand the importance of what is going on, both parties will understand that—the union and the railroad,” he replied. “I hope that at some point they can come to an agreement that works for both, that the employees of the railroads are looked after and that the railroad has what they need moving forward.”
