Ag groups call for resolution ahead of potential rail stoppage

On August 18, 2024, the Teamsters Canada Rail Conference (TCRC) has issued a 72-hour strike notice to Canadian Pacific Kansas City (CPKC), signaling a potential work stoppage starting at 12:01 a.m. on August 22, 2024.

This move comes as a response to CPKC’s alleged unilateral changes to the terms of the collective agreements, which the union claims undermine essential worker protections.

In a parallel development, Canadian National Railway (CN) has issued a lockout notice to TCRC, effective the same day. CN’s decision follows stalled negotiations over the weekend, with the company stating that no meaningful progress has been made. CN has begun a phased shutdown of its network to ensure safety and minimize disruption.

The potential work stoppage has sparked significant concern across various industries — with agriculture being high on the list. The National Cattle Feeders’ Association (NCFA) has voiced their worries in a letter, highlighting the critical role rail transport plays in the supply chain for agricultural products. The letter emphasizes the potential economic impact, noting that even a minor disruption could lead to significant financial losses.

“The Canadian beef industry relies heavily upon the timely rail delivery of cattle feed from the United States to feed our national heard consisting of millions of animals,” reads the letter. “The volume is significant – on average, a single railcar provides enough feed for 8,000 animals for one day. To transport the same volume of feed grain that trains currently deliver, would require more than 1,000 super-B trucks each week — an option that is not feasible.”

Brodie Haugan, Chair of Alberta Beef Producers, emphasizes the uncertainty the sector is feeling.

“There are operations in Alberta that rely on timely rail deliveries of feed, particularly in regions where feed is challenging to acquire due to ongoing droughts,” explains Haugan. “A disruption in rail movement poses incredible risk to the wellbeing of livestock, the farmers and ranchers who care for them, the greater agricultural industry, and to Canada’s reputation in international trade.”

In response to the impending strike and lockout, several agricultural groups have launched a campaign to “Stop the Strike.” The initiative, spearheaded by Pulse Canada, aims to pressure the federal government to intervene and prevent the work stoppage. The campaign’s website, StopTheStrike.ca, provides resources for stakeholders to voice their concerns and urge the government to facilitate a resolution.