The ongoing strike at the Port of Vancouver is estimated to be costing Canada's grain industry $35 million a day in lost exports.
About 650 Grain Services Workers walked off the job Tuesday morning at the Port of Vancouver over contract issues with the Vancouver Terminal Elevators Association (VETA).
VETA represents six grain export terminals Viterra's Cascadia and Pacific Terminals, Richardson International Terminal, Cargill Limited Terminal, the G3 Vancouver Terminal and Alliance Grain Terminal which operate at the Port.
Like many farm groups the Keystone Agriculture Producers is calling for an immediate resumption of activities at the Port of Vancouver, including all terminal activity.
President Jill Verwey says this is just another hit as farmers have been dealing with disruption after disruption when it comes to getting their product to market this year.
"It's disappointing that this is yet another disruption that impacts us. It impacts the flow of of grain and ultimately I think affects our reputation as a reliable source of grain in the international market."
She says producers already face a massive amount of pressure during the annual harvest season to get the crop in the bin.
"This disruption at such a critical time of year will only add further stress to producers as they work long hours to get harvest complete, not knowing if there will be a transportation system to get that product to market."
She notes once again farmers are going to pay the price for the work stoppage at the Port.
"If there's disruption that stops the flow of product getting loaded on those ships, at the end of the day its going to have a negative impact on farmers being able to fill those contracts that we have here this fall. If the grain is not moving at the port, then that means everything is going to back up right to the elevator and the producer."
KAP points out will result in severe disruptions for the export of grain through many bulk grain export terminals in Vancouver, with 70% of Canada’s bulk grain exported through
Vancouver grain terminals representing 27 million tonnes of grain in the 2023/24 crop year. For pulse crops, close to 100% of bulk peas and lentils move through Vancouver terminals which was 2.7 million tonnes in 2023/24.
The President of the Wheat Growers Association Gunter Jochum says the timing of the strike at the Port of Vancouver could not be worse.
Daryl Fransoo, Chair of the Wheat Growers Association says exporters are currently working hard with Chinese importers to move critical canola shipments before China retaliates against tariffs on EV’s, aluminum, and steel.
"The disruption would not only affect trade with China but would also impact shipments to other parts of the world, as vessels arrive in Vancouver to be loaded. These ongoing strikes have both immediate and long-term consequences. Vessel demurrage and cancelled contracts, with vessels diverted to other exporting nations, are immediate impacts. Long term, our reputation as a reliable supplier is being tarnished, and history shows this will affect future sales. The entire value chain, from exporters to producers, will feel the negative effects."
Jochum points out that we have numerous independent unions on the waterfront that can disrupt the supply chain at any time.
"Under Clause 87.7 of the Canada Labour Code, grain is deemed essential to be loaded on vessels, but this clause does not apply to the GWU. We are efficient at producing the world’s highest quality grains and oilseeds, yet the government continues to allow these supply chain disruptions and fails to address the changes needed to grow this sector."
The Wheat Growers note that Canada is the fifth-largest food exporter in the world, with agriculture exports valued over $99 billion in 2023. The success of Canada’s agriculture sector and its contribution to the nation’s GDP depend on the ability to reliably export to global markets.
With all that in mind Fransoo wants to know ... " When will this government wake up and make all grain movement from ports an essential service?"
In the meantime, the National Farmers Union (NFU) stands in solidarity with the Port of Vancouver Grain Workers Union (Local 333).
The NFU points out its the fundamental right of organized labour to strike to advance their collective bargaining demands, including fair wages and good working conditions. Intense bargaining started in November 2023. Nearly a year later negotiations with the Vancouver Terminal Elevator Association (VTEA) reached an impasse, and with VTEA’s unresponsiveness to their communications, the GWU initiated strike action.
National Farmers Union member, Cam Goff says they recognize how disruptive labour action is at this time. the elevator companies involved ( Cargill, Viterra, G3 and Richardson) are among the world's largest, most profitable grain companies who can easily afford to pay fair prices for grain and pay workers fairly for their labour.
"This work stoppage will remind everyone of the critical role workers play in getting our grain to market. It has always been our position that a negotiated settlement is best, and we hope they will reach a fair agreement quickly. "
The VTEA members are Cascadia Terminal (owned 75% by Viterra and 25% by Richardson International), Pacific Terminal (Viterra), Richardson International Terminal, Cargill Limited Terminal, G3 Terminal Vancouver (Owned by Bunge and SALIC) and Alliance Grain Terminal (Paterson GlobalFoods, Parrish & Heimbecker and North West Terminal).