NGFA urged the Canadian government to take action to prevent a potential rail strike or lockout that would lead to shutdowns or slowdowns of rail-dependent facilities. In a letter sent on Aug. 2 to the chairman of the Standing Committee on Agriculture and Agri-Food in the Canadian House of Commons, NGFA noted that a potential strike by the Teamsters Canada Rail Conference would cause a significant disruption to the entire North American supply chain.
The Canada Industrial Relations Board (CIRB) is expected to decide no later than Aug. 9 on whether a work stoppage by the Teamsters Canada Rail Conference would impact residents’ health and safety. If it is determined that there is no health and safety risk, workers can legally strike 72 hours later.
“As representatives of U.S. and Canadian agribusinesses that rely on rail transportation, we strongly urge action to avoid significant economic damage to North American supply chains and further uncertainty for rail customers if a new labor agreement is not reached before the end of the 72-hour period,” NGFA noted.
The livestock industry depends on rail for the timely delivery of feed grains and ingredients, while many facilities, such as biofuels operations, flour mills and other grain processors, require uninterrupted rail service, the letter stated. NGFA also noted that the timing of this potential shutdown is particularly troublesome as it coincides with the wheat, canola, barley and oats harvest when rail transportation needs are at their peak.
“Operational railroads are essential on both sides of the border for the integrated North American supply chain.” NGFA stated. “While we believe a negotiated solution is always the preferred outcome, the government should be prepared to move quickly if negotiations fail.”
Read the Aug. 2 letter here.
After Canadian rail labor unions voted to strike in May, NGFA expressed these concerns in a similar letter to CIRB sent on May 21.