Rail work stoppage 'devastating to the grain industry,' says Western Canada ag sector advocate

The effects of adouble-railway work stoppage are mounting daily for Canada's agriculture sector, says one industry advocate, and will only get worse if it continues.

"It's devastating to the grain industry to have a shutdown," Wade Sobkowich, executive director with the Western Canadian Grain Elevator Association, said in a interview Thursday, after9,300 engineers, conductors and yard workers withCanada's two biggest railways Canadian National and Canadian Pacific Kansas City were locked out by their employers.

CPKC's 3,500workers began a strike at the same time as the lockout began, after months of contract talksfailed to reach an agreement between theTeamsters Canada Rail Conference union and the two rail lines.

The grain industry moves, on average, roughly $50 million worth of product every day, said Sobkowich.

"So if we're down for [10 days], that's $500 millionor half a billion dollarsworth of product that doesn't get moved," Sobkowichsaid.

It would take about 300 trucks to replace one train in terms of the amount of grain transported, he said.

"Soeven if it were economical [as an option],which it's not, there just aren't enough trucks."

With harvest just about to start,Sobkowichsaid the situation comes at the "worst possible time."

"We're notin the business of storing grain. We're in the business of moving grain."

Back-to-work order could raise Charter issues: law prof

Less than 17 hours after the lockout began on Thursday, federal Labour Minister Steven MacKinnon stepped in to refer the dispute to the Canada Industrial Relations Board to impose binding arbitration.

It was expected the CN workers would return to the job on Friday, but that morning, Teamsters Canada said MacKinnon's actions were unacceptable. The union then served CN witha 72-hour strike notice.

MacKinnonsaid late Thursday he expected service could resume "within days."

But Bruce Curran, an associate professor at the University of Manitoba's faculty of law who specializes in labour law, said whether that will actually happen is still "up in the air."

"My understanding is [the minister requested] theCanadian Industrial Relations Board to do twothings: to basically proceed to binding arbitration for the parties, but also to order workers back to work as soon as practically possible," Curran said in a Friday afternoon interview with CBC, after Teamsters issued its strike notice to CN.

"Ordering the workers back to work may in fact present Charter problems with respect to the workers' constitutionally protected right to strike and right to collectively bargain, such that the [board] may have some legal concerns."

Curran said that the time it takes for CIRB to make an official ruling varies, but he expects one on this "fairly soon" given the stakes.

"I do have a degree of sympathy for the workers," he said. "The root of [their]concerns which I think are legitimate around safety are not going to be addressed through this binding arbitration process, because binding arbitration doesn't deal particularly well with complicated non-monetary issues."

In a statement emailed to CBC Friday afternoon, a spokesperson for theCanada Industrial Relations Board said it is "addressing the [labour] minister's referrals with utmost urgency. Case management conferences were held last evening [Thursday], and a hearing is proceeding today."

The board had no further comment on those proceedings, the spokesperson said.

Lockout'irresponsible': Kinew

Virgil Siedler, a local union chair for conductors at CPKCwho was on a picket line in Winnipeg Friday, said a back-to-work order "guts the whole negotiating process."

"The fact that we're being basically forced to go back to work really just sends a message to companies that [they] don't have to negotiate. You can just bide your time and the government will send your employees back to work," he said.

"There's absolutely no leverage for the union if you can just get forced back to work."

CPKC said it was prepared to discuss the resumption of service at a meeting with theindustrial relations board, but the union refused and said it intends to make submissions to challenge the constitutionality of MacKinnon's actions.

The work stoppage at CPKC remains ongoing.

Manitoba Premier Wab Kinewcalled out CN and CPKC for their actions.

"I thought the lockout was an irresponsible step by the companies," he said Friday.

"I wish that the federal government could take an action here that would just provide a path forward that's fair for the workers but keeps the economy moving."

As rail dispute continues, Manitoba industries worry about impacts

1 month ago

Duration 2:01

As the shutdown of Canada's two biggest railways continues on Friday, industries in Manitoba that are affected by the dispute are concerned about impacts on the economy.