The Wheat Growers Association has extended a warm welcome to Hon. Steven MacKinnon as the new Minister of Labour, urging him to take swift action to prevent a potential national rail strike.
The Canadian Industrial Relations Board (CIRB) is scheduled to issue its decision on the maintenance of rail services by Friday, August 9. A strike could commence within 72 hours following this decision if an extended cooling-off period is not granted.
In a media release, Daryl Fransoo, the Saskatchewan Director for the Wheat Growers says “We hope that the new Minister understands that farmers depend on grain movement at harvest to get paid at delivery which helps offset harvest costs and inputs for the year. The complacency of the federal government on this file is putting farmer’s financial viability at risk.”
Fransoo also highlighted the risk to Canada’s reputation on the global stage, noting that international buyers rely on a “just-in-time delivery” model. “Regaining the trust and loyalty of international customers is very difficult. It’s often forgotten that once a strike ends, it can take months to move the backlog of grain, hurting farmers and communities long after the strike is over,” he explained.
The Wheat Growers Association has reached out to the previous Minister on April 24 and May 22, 2024, seeking intervention to resolve the labor dispute. To date, there has been no response.
Fransoo concluded with a call to action, stating, “It’s not too late to resolve this issue, but time is running out to ensure that the 2024 harvest is not impacted. We urge the Minister to act swiftly in the best interest of Canadian grain farmers, our export markets and the Canadian economy.”
Ian Boxall, President of the Agricultural Producers Association of Saskatchewan, has also emphasized the urgent need for a resolution. According to him, without prompt action, the standoff threatens not only the province’s agricultural sector but also the national economy.
Background
The Canadian Industrial Relations Board (CIRB) is expected to deliver a vital decision regarding the ongoing labor dispute between CPKC, CN, and their workers by August 9, CPKC said in its July 12 statement.
This decision comes after the intervention of Labour Minister Seamus O’Regan (who who subsequently announced his was resigning as Labour Minister on July 18), aiming to prevent a strike that could significantly impact the country’s economy, particularly the agricultural sector.
In May, approximately 10,000 workers, represented by the Teamsters Canada Rail Conference (TCRC), were on the brink of striking.
However, the situation was stalled by the Labour Minister’s request for CIRB involvement, under the mandates of the Canada Labour Code. This legal framework restricts both parties from initiating a strike or lockout while the board’s decision is pending.
The primary concern lies in the potential economic fallout like the shipping disruptions experienced in 2013-14, which cost Prairie farmers approximately $6.7 billion.
With the agricultural community still reeling from recent disruptions, stakeholders are particularly sensitive to the timing of this dispute, coinciding with the impending harvest season.
Both CPKC and CN have been proactive during this period, with CPKC requesting an extension of the cooling-off period by 30 days to facilitate further negotiations.
This extension is crucial in providing more time for both sides to reach a mutually beneficial agreement.
As the decision date approaches, agricultural groups and economic analysts alike are urging both parties to recognize the high stakes involved.
The resolution of this dispute is imperative not only for the farming communities but also for maintaining the economic integrity of Canada. The outcome will undoubtedly have lasting implications for both the immediate and long-term landscape of Canadian industry and agriculture.
