Sask. Mining Association 'relieved' CP Rail resuming operations after labour dispute

Canadian Pacific Railway Ltd. has reached a deal with its union representing its workers which is creating a “huge sigh of relief” for the Saskatchewan Mining Association (SMA).

The railway continued normal operations on Tuesday after it agreed to settle a labour dispute with Teamsters Canada Rail Conference, the union representing 3,000 conductors, engineers, train and yard workers.

“This would have been extremely disruptive had it continued for any period of time,” SMA president Pam Shwann told CTV News.

Shwann says there has already been some delayed service in the lead up to the labour disruptions and having it contained is good news.

She says companies were already preparing for disruption prior to March 16 to ensure their products would make it to market.

In an email to CTV News, Nutrien says it “applauds” CP Rail and its union for reaching an agreement to enter into binding arbitration and to get “the trains rolling again.”

“Thanks to the significant efforts of Nutrien’s teams, we were able to lessen the impacts from the slowdown of rail service ahead of and during the lockout/strike action,” Nutrien said in the statement.

Last week Nutrien announced it would increase its potash production in 2022 by one million tonnes and says a service disruption could have jeopardized that.

Shwann says even one day of disruption translates to at least three to four days before companies can get service back to normal. However, she’s grateful the disruptions were “limited.”

According to the Sask. Mining Association, 33 per cent of the world’s potash supply comes from Saskatchewan and is a key commodity.

Last year the province produced a record 22 million tonnes of potash that went to market in June and generated over $7.6 billion in revenue. 

“This is a huge economic pillar of Saskatchewan and not just the economy … but potash from Saskatchewan helps feed the world and so it’s really important that at this time of critical spring seeding that we’re able to deliver that product to market.”