Communications

Grain Farmers Welcome Government’s Directive for Binding Arbitration, Urge Swift Resumption of Railway Services

Hana Sabah on August 23, 2024

MEDIA STATEMENT

Negotiating parties have yet to reach an agreement on resumption of activities, despite clear directives from the government

(OTTAWA, ON – August 23, 2024) We welcome Minister of Labour Steven MacKinnon’s announcement that the government is directing the Canadian Industrial Relations Board (CIRB) to impose final binding arbitration. This news comes after weeks of grain farmers and agriculture groups urging the Minister to impose binding arbitration through Section 107 of the Canada Labour Code to protect farmers’ livelihoods, food security, and Canada’s international reputation.

However, negotiating parties have yet to reach an agreement on resumption of activities, despite clear directives from the government. For the good of Canada’s food, economic, and national security, we are calling on all parties to abide by yesterday’s directives and to work with, not against, the CIRB to resume railway service. Grain farmers will continue to lose $50 million a day with the continuance of a total shutdown of our national railways. The time is now to get Canada’s railways back on track.

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For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca

Railway Work Stoppages to Cost Grain Farmers Over $50 Million Daily

Hana Sabah on August 22, 2024

(OTTAWA, ON – August 22, 2024) Grain Growers of Canada (GGC) is raising the alarm over the unprecedented dual work stoppage by both of Canada’s major railways, CN and CPKC, which began this morning. The work stoppages will inflict severe economic damage on the grain industry and the broader Canadian economy. This simultaneous disruption comes at the most critical time of the year for grain farmers—harvest season—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,” 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.”

Canada is home to over 65,000 grain farmers whose crops account for $35 billion in exports. With grain elevators situated on railways, growers rely on the network to market and sell their grain. With no viable alternatives to rail, the delays will result in lost sales, degraded grain quality, and a substantial loss of market confidence.

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

The agricultural sector is already under pressure from various challenges, including fluctuating commodity prices and ongoing geopolitical tensions. A work stoppage at CN and CPKC further exacerbates these issues, leading to increased costs and reduced competitiveness for Canadian farmers.

“Previous labour disruptions have already strained Canada’s trade relationships, and another prolonged stoppage could further damage our reputation as a reliable supplier,” Harpe added. “International buyers may turn to other countries for their grain needs, resulting in lost market share for Canadian farmers and long-term economic repercussions.”

Grain Growers of Canada is urgently calling on the federal government and the Minister of Labour to intervene and ensure that these critical transportation lines are restored to full operation as quickly as possible.

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For more information:

Hana Sabah
Communications Manager
P: (514) 834-8841
E: hana@graingrowers.ca