A potentially economy-crippling national rail strike is looming over Canada, and the Federal Government only has seven more days to implement back-to-work legislation and avert the crisis.
That’s the message from the provincial government, alongside numerous mining and agricultural associations, as they urge Ottawa to step in.
The strike came about as both the Canadian National and Canadian Pacific Kansas City railways and their workers are at odds over scheduling, safety and salaries. Canada’s labour tribune recently ruled railway workers as non-essential, so disgruntled employees have no obligation to clock in beginning on August 22nd if a deal isn’t reached.
Transportation Minister Lori Carr says the mining and agriculture industries are pleading for a solution.
“Seventy per cent of what we produce in this province actually is exported to the world, and the majority of those products go by rail. It is paramount that this service is available for all of these companies, so they can continue to do business and be that reliable source for the world.”
Carr says she has written two letters to Ottawa urging them to do something, neither receiving a response.
Murad Al-Katib, CEO of AGT Foods, says the railways are heavily relied on by the agriculture sector, especially during harvest. He adds that even a short strike could have huge implications on Canada’s economy.
“The rail strike doesn’t just disrupt service for its length. One day or two days or five days creates disruptions that lead to one week, two weeks, five weeks and months.”
Wade Sobkowich, Executive Director of the Western Grain Elevator Association, says previous rail strikes have already hindered Canada’s reputation with customers, and the Canadian grain industry is in danger of losing business to Belarus and Russia if the strike takes place.
“This rail strike is coming at the worst possible time of year, right at the start of harvest, and to make matters worse, it’s going to be on both railways at the same time, which is really unprecedented to our collective knowledge. It’s going to stop virtually all of Canada’s domestic and export grain flow.”
He says a strike will also be felt in the grocery store, in terms of price and supply, as stationary grain would add to inflationary pressures. He adds that Canada’s competitors, like Russia, would be quite eager to step in to fill the gaps Canada leaves.
Provincial Agriculture Minister David Marit estimates Saskatchewan would lose hundreds of millions of dollars each day the potential strike continues.