(file photo/farmnewsNOW Staff)

By Alice McFarlane

CN Rail and CPKC workers locked out

Railway work stoppage comes at a high cost to farmers and ag industry

Aug 22, 2024 | 11:15 AM

Grain Growers of Canada (GGC) said the unprecedented dual work stoppage by both of Canada’s major railways will inflict severe economic damage on the grain industry and the broader Canadian economy.

Grain Growers of Canada Executive Director Kyle Larkin said the simultaneous disruption comes at the most critical time of the year for grain farmers when rail transportation is essential for moving crops to market.

GGC estimates that the initial impact of this dual stoppage will cost grain farmers over $43 million a day in the first week alone, with losses expected to escalate to $50 million a 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,” Larkin said. “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.”

With grain elevators situated on railways, growers rely on the network to market and sell their grain. GGC Board Chair Andre Harpe said with no viable alternatives to rail, the delays will result in lost sales, degraded grain quality, and a substantial loss of market confidence.

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“The economic impact of this stoppage will be felt far beyond the farm gate,” Harpe said. “Consumers could see higher prices and shortages of food products that rely on grain, while farmers are left grappling with reduced income.”

Harpe said previous labour disruptions have already strained Canada’s trade relationships, and another prolonged stoppage could further damage our reputation as a reliable supplier.

“International buyers may turn to other countries for their grain needs, resulting in lost market share for Canadian farmers and long-term economic repercussions,” he said.

Grain Growers of Canada is asking the federal government and the Minister of Labour to intervene and have the railways restore full operation as quickly as possible.

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alice.mcfarlane@pattisonmedia.com

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