A labour dispute between Canadian Pacific Railway and the Teamster Canada Rail Conference – which may result in a labour stoppage starting this weekend – will be disastrous to the country’s already fragile fertilizer supply chain, officials said.
A statement from industry association Fertilizer Canada said that CP Rail’s announcement Wednesday (a 72-hour notice of a lockout of 3,000 TCRC union members) is a dire development in an environment where Canadian fertilizer will be more in demand globally than ever before.
Canada is a leading global supplier of the commodity, and two other major exporters – Russia and Belarus – are expecting to be severely impacted by the ongoing sanctions against those countries put in place by the West after Moscow invaded Ukraine (with Belarus’s aid) earlier this month.
“Food security, domestically and internationally, relies on the Canadian fertilizer industry,” Fertilizer Canada said in the statement. “The agricultural sector is already experiencing supply challenges compounded by the war in Ukraine and cannot withstand anymore disruption.
“The 2021 growing season saw lower crop yields due to weather conditions,” the statement continued. “Food security in Canada and internationally depends on maximizing crops this season and fertilizer is critical to this.”
Calgary-based CP Rail said it did not reach the decision of a lockout lightly, noting that the purpose was to push TCRC leadership to either reach a negotiated settlement or agree to binding arbitration.
Without those processes in place, CP Rail president/CEO Keith Creel said that TCRC would “prolong for weeks or months the uncertainty associated with a potential labour disruption.”
"The world has never needed Canada's resources and an efficient transportation system to deliver them more than it does today,” Creel said in a statement, saying the two sides have been negotiating since last September. “Delaying resolution would only make things worse. We take this action with a view to bringing this uncertainty to an end."
CP’s announcement came after the TCRC rejected the company’s latest offer on Wednesday. The TCRC said CP Rail’s offers “continue to dismiss our members’ demands” and led to its membership voting 96.7% in favour of strike action.
“It was well known that CP was going to force a work stoppage and lockout our members,” said TCRC spokesman Dave Fulton in a statement. “They have done just that... At the bargaining table, CP continues to dismiss our members’ demands and are unwilling to negotiate the issues they have created. We remain committed to reaching an acceptable agreement that addresses our members issues.”
The TCRC said the key issues being disputed include wage levels, pensions, benefits and work rules.
Fertilizer Canada said it is doing everything in its power to convince Ottawa to get involved and get both sides to enter into binding arbitration. The group also said that – if necessary – Ottawa should be prepared to “enact legislation to swiftly end the work stoppage.”
