An imminent strike by unionized rail workers and CP Rail could sever parts of Canada’s already weakened supply chain as well as severely impact this year’s growing season for farmers across North America.
On Mar. 4, Teamsters Canada Rail Conference (TCRC) voted in favour of organizing a strike by Wednesday if necessary.
The latest update by the union indicates that they hope to reach a tentative agreement with CP Rail, although outstanding issues remain.
“If we cannot reach an agreement, then as noted we will seek assistance and seek a strike mandate from the membership at that time,” stated the latest TCRC press release.
As of publication time, negotiations between the two parties and federal mediators in Calgary are ongoing, and a strike notice has yet to be issued.
The timing of the strike couldn’t be any more unfavourable, with farmers across Canada and the US now preparing for the spring planting season.
American lawmakers have also voiced their concerns about a potential strike given the interconnectedness of the two nations’ supply chains.
CP Rail is also a major transporter of Canadian oil into the US.
Several senators representing North Dakota, Montana and Indiana have signed a letter urging Prime Minister Justin Trudeau to find a resolution to the potential crisis.
“At a time when supply chains are already constrained, shutting down North America’s essential rail supply chain would create a freight capacity crisis,” wrote Republican Senators Kevin Cramer, John Hoeven, Mike Braun and Steve Daines.
Agricultural groups including Fertilizer Canada have also called for an immediate agreement between the feuding parties, citing a “potentially disastrous shutdown” of an already strained supply chain.
“Fertilizer Canada and our members are greatly concerned with the looming CP strike,” President and CEO of Fertilizer Canada Karen Proud said last week in a press release.
“The agriculture sector is already experiencing supply challenges compounded by the war in Ukraine and cannot withstand anymore disruption to the supply chain without severe consequences for farmers, food security in Canada and worldwide, and the Canadian economy.”
Approximately 75% of all fertilizer produced and used in Canada is moved by rail.
Meanwhile, sanctions on Russia – the world’s second-largest producer of fertilizer behind Canada – have worsened the cost of fertilizer, forcing farmers to pass the costs on to consumers.
