Press Release Details

Western Grain Elevator Association Applauds Federal Government for bringing Final Binding Arbitration to Rail Dispute

08/23/2024

WINNIPEG, Manitoba, Aug. 23, 2024 (GLOBE NEWSWIRE) -- The Western Grain Elevator Association is extending gratitude to the federal government of Canada for recognizing the negative impacts of the CN and CPKC work stoppage to the Canadian grain sector and the broader Canadian economy, by directing the Canadian Industrial Relations Board to assist the parties with Final Binding Arbitration.

“We are extremely pleased that Minister MacKinnon, Minister MacAulay and their cabinet colleagues recognized that a negotiated deal was not possible, and imposed arbitration to resolve these disputes,” said Wade Sobkowich, Executive Director of the WGEA. “The grain sector would have been playing catch up for the remainder of the year with a lasting strike or lockout.”  

Unfortunately, some damage has been done as grain companies took steps to halt grain movements. The week of shipping prior to the August 22nd stoppage has been impacted, and every day of lost shipping results in approximately one week of recovery time. Grain shippers and exporters will now be working hard to re-engage with their customers and re-schedule farmer deliveries as the rail network winds back up.

For more than a decade, a labour disruption (strike or lockout) has occurred or been threatened every year or two at one or both national railways.  And on each occasion, Canada’s food processors and international customers are told that they may not receive the grain they need to manufacture food products that eventually make their way to store shelves.  They are then left scrambling to determine how they will manage their operations and they are forced to consider alternative, non-Canadian, sources of supply.

“Providing a framework for the fair and orderly resolution of labour disputes between railways and their unions through binding arbitration, and thereby avoiding the needless harm resulting from rail service interruption has unquestionable merit – particularly if both parties truly believe their negotiating positions to be reasonable,” added Sobkowich. “Concerns that such an approach threatens the integrity of labour relations fail to take into account the unique market dynamics of single-carrier rail service and are far outweighed by the harm caused to the Canadian economy by incessant rail service interruptions.”

The grain sector is part of a growing chorus of business groups across Canada urging the federal government to make rail an essential service.

The WGEA is an association of grain businesses operating in Canada which collectively handle in excess of 90% of western Canada’s bulk grain exports. Its members account for approximately one fifth of bulk railway revenue in Canada and pay annual total freight of one and a half billion dollars.

Contact: Wade Sobkowich, Executive Director, WGEA (204) 942-6835 or wgea@mts.net 


Source: Western Grain Elevator Association