Grain Industry at Risk as Rail Labour Dispute Looms, CMBTC Urges Immediate Action
August 21, 2024
August 21, 2024 (Winnipeg, MB) – As farmers across Canada begin harvesting, a looming labour dispute between the nation’s two major freight railways and their unionized workers threatens to disrupt grain transportation, putting the entire grain sector at risk. The Canadian Malting Barley Technical Centre (CMBTC) urges the government, railways, and labour organizations to act swiftly and use available tools to avert a crisis that could harm farmers, the national economy, global food security and Canada’s reputation as a reliable grain supplier.
“A disruption on even one railway would send shockwaves through our economy, but a complete stoppage would be disastrous for Canada’s grain industry,” said Peter Watts, Managing Director of the CMBTC. With harvest underway and rail systems already under strain, any interruption will severely hinder our ability to meet commitments to both domestic and international buyers.”
Canada’s ability to deliver high-quality grains relies on efficient rail service. By the end of August, 50 per cent of Western Canada’s barley crop will be harvested, much of it destined for export as malting barley and processed malt. A rail service shutdown would disrupt the entire grain supply chain, causing grain elevators and processing plants to reach capacity quickly and forcing farmers to halt deliveries. This would lead to significant cash flow problems, operational challenges, and long-term damage to Canada’s standing as a dependable global supplier.
“This isn’t just about delays—it’s about livelihoods, sector stability, and the health of our national economy. Even a brief disruption might seem manageable, but the resulting backlogs could take months to clear, causing long-term damage,” Watts added.
The CMBTC strongly urges the government, rail companies and labour unions to use every available resource to prevent a rail service stoppage. “Allowing unnecessary labour disputes to jeopardize our global reputation and national prosperity is simply unacceptable,” says Watts.
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For more information, please contact:
Hayley Stacey
Manager, Markets and Communications
hstacey@cmbtc.com
204-804-3333
