San Francisco Frontiers - Canadian Pacific trains at standstill in labor dispute

After months of negotiations over salaries, benefits and pensions, Canadian Pacific (CP) management and the Teamsters union have failed to reach an agreement.

Canadian Labor Minister Seamus O'Regan in a tweet Monday expressed "faith in their ability to reach an agreement" in ongoing negotiations, but added that "Canadians expect them to do that ASAP."

The labor dispute has hit a supply chain already in distress after two years of the Covid-19 pandemic, devastating floods in the west of the country at the end of 2021 and a meteoric rise in fuel prices.

"This is the last thing we need right now," said Erin Gowriluk, executive director of the Grain Growers of Canada, an association of 65,000 farmers that is calling on the government of Justin Trudeau to intervene.

"We need to see the trains continue to move whatever grain that we have left in the bins," said Gowriluk.

"But more importantly right now is to get that fertilizer out to Canadian farms across the country so we can get crops in the ground."

A union official told AFP that discussions were underway with a federal mediator.

The second-largest country in the world by area, Canada relies heavily on rail to transport goods and manufactured products.

CP's network crosses much of southern Canada and extends as far as Kansas City, Missouri, in the central United States.

On Monday, the Canadian Chamber of Commerce estimated that the shutdown of rail activities since Sunday would have a "deep and adverse impact for all Canadian businesses -- both big and small -- who rely on rail for their supply chain."

Its president, Perrin Beatty, warned in a statement that the "severe damage" to supply chains would also "harm our reputation as a reliable partner in international trade."

In 2020-2021, CP transported more than 30 million tons of grain.

S.Jackson--SFF