Potential CPKC, CN railway strike is a 'huge concern' for Saskatchewan farmers

The Agricultural Producers Association of Saskatchewan (APAS) is calling on all parties involved in Canada’s two major railways to ensure operations continue.

The APAS says with harvest around the corner, the risk of a dual strike from Canadian Pacific Kansas City (CPKC) and Canadian National (CN) is concerning for farmers.

"We market grain at times when we need the money and come fall we've spent billions of dollars in Saskatchewan to put the crop in the ground, and we expect to be able to ship our grain as soon as we start the combines," said Ian Boxall, president of APAS.

CPKC CEO Keith Creel said operations will likely grind to a halt due to a strike expected in the second half of August.

"We're far apart," Creel said Tuesday, referring to the railway and the union, which remain in disagreement over a new collective agreement.

"I'm just being transparent and honest. It's going to be a challenge."

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Canadian National Railway Co., which also faces the prospect of a system-wide stoppage, made conflicting statements last week, saying it does not believe the situation will escalate to a full-fledged strike or lockout.

"If they happen to strike, it'll take months or a year to get back on track," Boxall said in an interview with CTV News on Wednesday.

"It’s a huge concern for producers, and it should be a huge concern for Saskatchewan people and for all of Canada because we export so much of what we produce here."

CPKC and CN are awaiting a decision from the country's labour board on whether some shipments would be considered essential services in the event of a strike by the Teamsters Canada Rail Conference, which represents about 9,300 engineers, conductors, and yard workers at the two companies.

No strike or lockout can take place until at least 72 hours after the decision is made. A ruling is expected by Aug. 9.

In June, the Teamsters rejected offers from CPKC and CN to enter into binding arbitration, a development that raised the risk of a strike. Then labour minister Seamus O'Regan, who recently announced his resignation from cabinet, asked the Canada Industrial Labour Board to address whether some shipments would continue as essential services in the event of a work stoppage.

The disruption would postpone some shipments "certainly into Q4 and likely into Q1 of next year," depending on the length of the stoppage, said CPKC chief marketing officer John Brooks.

Boxall said he hopes a deal can get done to avoid "a huge economic hit to Canada."

"We would ask the Ministry of Agriculture and Agri-Food Canada, Transport Canada, and Labor to ensure that these conversations are happening, (and) they come up with a deal that works for both sides," he said.

-With Canadian Press files