'Absolutely critical': Looming rail worker strike causing concern for Sask.'s biggest industries
The possibility of a strike by both Canadian National (CN) and Canadian Pacific Kansas City (CPKC) rail workers has Saskatchewan’s major economic drivers sounding alarms.
Last week, workers of Canada’s two largest rail companies voted overwhelming in favour of a strike if they are unable to negotiate a deal.
“Rail movement of our grain is absolutely critical,” said Agricultural Producers Association of Saskatchewan (APAS) Vice President Bill Prybylski.
“There’s a limited amount of time mines can continue operating without rail getting product to market,” said Saskatchewan Mining Association (SMA) President Pam Schwann.
According to the SMA, potash mines in the province exported over $18 billion in product last year. Ninety nine per cent of product was moved by rail.
“It’s a large bulk and tonnage product,” Schwann explained. “We rely on rail to get our product to market.”
If a strike action begins, the effects could be detrimental to mines in the province.
“We only have storage for five to seven days,” Schwann added. “At that time, production has to stop.”
Even when the strike ends, restarting production takes time.
“For every day of strike, there’s about seven days of recovery time,” Schwann said. “So it takes time to get things back running smoothly.”
A potential strike could hit producers on either side of the growing season.
“The impact in the spring on the fertilizer industry is tremendous,” said Fertilizer Canada President and CEO Karen Proud. “Farmers are waiting to get supplies ahead of the planting season.”
“For our mining partners, Canada is relied on to export potash,” she added.
The rail strike comes less than a year after B.C. port workers walked the picket lines.
Prybylski says producers in our province are still feeling the effects of that supply chain disruption.
“When there are backlogs in the system that usually means lower prices for the grain they do sell,” he said. “Grain prices have taken a significant decrease in the last couple years.”
Industry leaders say Saskatchewan’s and Canada’s high reputation is on the line.
“We can grow high quality grain here,” Prybylski said. “But getting it to port is getting to be more of a challenge.”
“We have some of the best, most reliable mining in the world,” Proud added. “But if we can’t get our product to market in time, that’s a hit on our reputation as a trading partner.”
Premier Scott Moe promoted that reputation Monday at the Saskatchewan Chamber of Commerce’s Food, Fuel and Fertilizer Global Summit in Regina.
He says a strike would not be good for Saskatchewan.
“It’s entirely problematic,” Premier Scott Moe told reporters. “Any interruption to the supply chain is a challenge for the general health of the economy in Saskatchewan.”
Rail workers could be on strike as early as May 22.
CTVNews.ca Top Stories
PWHL Minnesota defeats Boston to win inaugural Walter Cup
Minnesota won the inaugural championship of the Professional Women’s Hockey League on Wednesday night, getting 17 saves from Nicole Hensley to beat Boston 3-0 in a winner-take-all Game 5 and claim the Walter Cup.
Canadians are eyeing moves to these cities for more affordable housing
Faced with elevated housing prices, half of Canadians in the country's largest cities are considering moving to places with more affordable housing.
B.C. mortgage broker ran $270-million Ponzi scheme, then fled Canada, bankruptcy trustee says
The trustee appointed to manage the bankruptcies of a Victoria mortgage company and its owner has concluded that they committed "numerous offences" and operated as a "massive Ponzi scheme."
Edmonton Oilers set to make lineup changes for Game 4 of Western Conference final
The Edmonton Oilers are shaking things up. Down 2-1 in the NHL's Western Conference final to the Dallas Stars, head coach Kris Knoblauch confirmed there would be lineup changes for tonight's Game 4.
McDonald's says $18 Big Mac meal was an 'exception' and their prices haven't risen that much
McDonald’s is fighting back against viral tweets and media reports that it says have exaggerated its price increases.
'Targeted again': Montreal police investigate after gunshot fired at Jewish school
Police are investigating another building in Montreal's community was struck by gunfire.
Tessa Virtue reveals she's expecting her first child. Here's what Canadians had to say
Canadian figure-skating icon Tessa Virtue is expecting her first child, she revealed via social media Tuesday.
Poilievre says Canadians 'fleeing' to Nicaragua, Liberals say it shows he 'doesn't have a clue'
Liberal parliamentarians are criticizing Conservative Leader Pierre Poilievre over a new video in which he promotes the idea that some Canadians are 'fleeing' Canada to live in Nicaragua because they can't afford a house in this country.
'Do not drive': Nissan warns Canadian drivers of explosion risk impacting 48,000 vehicles
Car manufacturer Nissan has issued a do-not-drive warning for some older vehicles equipped with Takata airbag inflators, due to the risk of explosion during a crash.