Saskatchewan farmers and businesses are facing the potential of a railway stoppage, which could result in losses of up to $1 billion a day. A strike by CP and CN Railways is looming, with a last-minute push to keep the trains running and save the harvest season across the Prairies. The strike could begin as soon as Thursday, impacting every Canadian and person in Saskatchewan. The president of the Saskatchewan Mining Association, Pam Schwann, emphasized the widespread impact of the strike. Agricultural Producers Association of Saskatchewan president Ian Boxall noted that $33 billion worth of grain is exported from Canada annually, and a rail stoppage would have significant implications for Canadian producers and the economy.
The potential work stoppage by the railroads could have serious consequences on Canada’s supply chain and global trade relations. Boxall pointed out that if countries relying on Canadian products face disruptions in the supply chain, they may turn to other sources for the products they need, impacting Canadian producers’ market share. Schwann highlighted the critical role of rail in transporting resources like Saskatchewan’s potash to market, emphasizing that without the railway, these products would not be able to reach their destinations. The simultaneous stoppage of both rail lines has never occurred before, leaving no alternative options to move the products.
The impact of a rail stoppage on Saskatchewan’s economy could be severe, particularly in the case of potash not reaching the market. Schwann estimated that millions of dollars per day could be lost if potash shipments are halted, leading to Belarus and Russia supplying the market instead. This scenario played out during last year’s strike at the West Ports, resulting in those countries gaining Canadian market share. Federal Labour Minister Steve MacKinnon has the authority to enforce binding arbitration between the rail companies and the union but urged both parties to work towards a resolution at the bargaining table to avoid a complete work stoppage.
The potential strike by CP and CN Railways has put pressure on both the companies and the union to come to an agreement to avoid disruptions to the supply chain and economic consequences. The looming threat of a rail stoppage has raised concerns among Saskatchewan farmers and businesses, who rely on the railway to transport goods to market. With billions of dollars at stake, the impact of a strike would be felt not only in Saskatchewan but across the country, affecting global trade relations and market share for Canadian products. The need for a resolution at the bargaining table is critical to prevent further disruptions to the economy and ensure the continued success of Canadian producers.
