OTTAWA,
ON, Aug. 12, 2024 /CNW/ - Today, CN
Railway and Canadian Pacific Kansas City (CPKC) issued embargoes
immediately halting certain fertilizer shipments ten days ahead of
an anticipated labour disruption. The threat of a work stoppage has
already begun to impact the movement of fertilizer and our industry
anticipates further embargoes and slowdowns in rail service. A work
stoppage that prevents the transportation of fertilizer will have
potentially disastrous effects on crop yields and food
security.
Fertilizer Canada Warns Threat of Rail
Labour Disruption Already Impacting Fertilizer Shipments
Fertilizer Canada is calling on
the federal government and Labour Minister Steven MacKinnon to take immediate action to
assist all parties, CN, CPKC, and Teamsters Canada Rail Conference
(TCRC), in reaching agreements, including ordering a directive for
binding arbitration that prohibits TCRC from undertaking strike
action and CN and CPKC from lockout action.
According to recent polling, over half of Canadians (55 per
cent) said they believe the government has a role to play in the
collective bargaining process and should step in to prevent impacts
on Canada's economy.
"The long-lasting and cascading impacts of labour disruptions
are felt before and after the stoppage even takes place," says
Karen Proud, President and CEO of
Fertilizer Canada. "We have had the threat of a work stoppage
hanging over our heads since the beginning of the year. Farmers
around the world rely on Canada's
fertilizer industry to maximize crop yields, and the fertilizer
industry relies on rail to get our products to market."
Fertilizer Canada urges the
federal government to amend the Canada Labour Code to strengthen
the bargaining process. According to polling, three in four
Canadians (75 per cent) agree we need to strengthen the bargaining
process for those working in Canada's supply chains to prevent disruption
and their consequences.
Fertilizer Canada is also
asking the federal government to recognize fertilizer as an
essential good critical to domestic and global food security that
should continue to move during work stoppages. Canadians support
this, with one in eight (79 per cent) saying they believe products
vital to domestic and global food security should continue to move
during a work stoppage.
"Canada's reputation has been
damaged by the numerous supply chain disruptions in recent
history," says Proud. "This uncertainty gives our international
competitors, like Russia and
China, an advantage. We need swift
action to protect Canada's
reputation as a reliable trading partner."
Railways begin slowing down service ahead of a work stoppage,
including issuing embargoes that halt the movement of certain
products. Embargoes issued today impact essential ammonia
fertilizer products. Service for all products will also begin to
slow three to five days ahead of a work stoppage and take three to
five days to reach regular service once it ends.
75 per cent of all fertilizer produced and used in Canada is moved by rail. There are very
limited alternatives to rail to ship fertilizer products. Canadian,
American, and international farmers rely on Canadian fertilizer to
maximize crop yields. Fertilizer is responsible for half of the
world's current food production.
Polling was conducted by Abacus Data with 1,500 Canadian
residents aged 18 and over from May
10th to 15th, 2024. The margin of
error for a comparable probability-based random sample of the same
size is +/ 2.45%, 19 times out of 20.
Fertilizer Canada represents
producers, manufacturers, wholesale and retail distributors of
nitrogen, phosphate, potash and sulphur fertilizers. The fertilizer
industry plays an essential role in Canada's economy and is committed to
supporting the industry through innovation, stewardship, safety and
security. As the foundation of Canada's agri-food sector, we apply innovative
solutions that positively impact agriculture, the economy, and the
social fabric of Canadian life.
SOURCE Fertilizer Canada