CN dispute with workers may dampen record crops
WINNIPEG — A possible strike or lockout by Canadian National Railway Co. workers may disrupt grain shipments and lead to contract penalties and defaults, according to the Western Grain Elevator Association.
About 95 per cent of Canada’s export grain is shipped by rail, and half of that is moved by Canadian National Railway, said Wade Sobkowich, executive director of the Winnipeg-based association, which represents grain handlers including Viterra Inc., Cargill Inc. and Richardson International. A labour dispute causing delays would interrupt deliveries at a time when farmers are harvesting record wheat and canola crops.
“The issue is not only the immediate stoppage in the movement of grain from country elevators to export terminal facilities, but the inability for the railways to recover from these lost shipments,” Sobkowich said. “Once it’s lost, it’s lost.”
Canadian National is optimistic it will settle a dispute with 2,800 rail workers before Oct. 29, the earliest date for a strike or lockout, Mark Hallman, a company spokesman, said.
Wheat production could expand to 33 million metric tons, up 22 per cent from 27.1 million in 2012 and exceeding the record harvest of 32.1 million tons in 1990, Statistics Canada said. The canola harvest in Canada, the world’s largest grower, may climb to 16.0 million tons, surpassing the record of 14.6 million tons in 2011.