A labour dispute involving Canada’s two main railways could have a devastating impact on local farmers, Manitoba’s farm policy organization says.
Jill Verwey, president of Keystone Agricultural Producers (KAP), told 680 CJOB’s The Jim Toth Show that disruption to an already fragile supply chain could cause some serious problems.
“With producers going to the field currently for some of the spring crops, and as we head into the harvest season, it puts a real strain on our handling facilities and being able to make sure that we get our crop to port in time to meet those deadlines,” Verwey said.
“The timing couldn’t be any worse on a system that has gone through some real challenges as far as trying to meet some supply demands.”
Canadian National Railway Co. and Canadian Pacific Kansas City Ltd. have both warned of imminent lockouts affecting around 9,300 workers slated to begin Aug. 22, unless they can secure new contracts with their employees.
Get daily National news
Get the day’s top news, political, economic, and current affairs headlines, delivered to your inbox once a day.
Because the majority of Canadian grain is exported internationally, Verwey said a delay could affect the country’s reputation with trading partners, she said.
“The biggest concern is if shippers can’t meet deadlines and have the grain at port when the ships are there, it hurts Canada’s reputation internationally as far as being a reputable source of grain. It could have really negative connotations on us.
“Certainly, countries that are purchasing our grain … if they can get it somewhere (else) where they have consistent, reliable service, that would be the worst-case scenario for Canada.”
© 2024 Global News, a division of Corus Entertainment Inc.