Mining Association says Nutrien layoffs part of systemic rail issue

Nutrien Inc.’s decision to lay off more than 1,000 employees at its potash operations is just the latest example of a wider problem with Canada’s rail system, says the Mining Association of Canada.

The fertilizer giant said late Thursday it will temporarily lay off up to 1,300 workers at two of its potash mines in Saskatchewan due in part to transportation backlogs in the rail system and the possibility of a strike at Canadian Pacific Railway.

The lost jobs and output shows more needs to be done to address shipping demands from the mining industry, said Brendan Marshall, vice president economic and northern affairs at the Mining Association of Canada.

“There is a systemic imbalance in the rail freight market now and there has been for decades. We’re constantly seeing a repetition of the issues where railways with market power exploit that power at the expense of shippers and the Canadian economy.”

The railways are bringing into question the reliability of Canada as a trade partner and costing jobs, said Marshall.

Saskatchewan Premier Scott Moe called on the federal government to act.

“1,300 Saskatchewan people now temporarily out of work because sheds full of potash can’t get on rail to market,” Moe said Thursday on Twitter.

“This is a direct result of the federal government not taking action where there is a huge problem, and they have clear authority to fix it.”