'Rely so heavily': Sask. producers highlight cost of rail disruption amid brief CN, CPKC work stoppage

Stakeholders continued to voice their concerns across Saskatchewan as a lockout of Canada's two major railways began Thursday – before being promptly stopped due to federal intervention.

Labour Minister Steven MacKinnon announced at a news conference at 2:30 p.m. CST that he will use his powers under Section 107 of the Labour Code to request the Canada Industrial Relations Board to impose final, binding arbitration in the labour dispute involving both of Canada's major railways.

Speaking to reporters, MacKinnon said he cannot give a concrete answer as to when railways will return to normal operations as the arbitration process now lies in the hands of the board.

Thursday’s lockout marked the first time in history that both Canadian National (CN) and Canadian Pacific Kansas City (CPKC) have implemented a simultaneous work stoppage.

The move came after bargaining efforts with the Teamsters Canada Rail Conference broke down just after midnight Wednesday.

The Teamsters represent 6,000 CN workers and 3,300 CPKC workers across the country. The two sides have been in negotiations since last year – with the collective bargaining agreements for the two railways expiring in December.

Rail services across the country were forced to a standstill as the two parties remained far apart on issues including crew scheduling, fatigue management and safety.

Affected industries such as mining, agriculture and construction made sure their concerns were heard on how any work stoppage affecting rail service would affect their respective industries.

Saskatchewan producers reported Thursday that harvest had reached 15 per cent complete.

As the season progresses, the question of where their precious yields will go weighs heavy on the minds of many producers.

This includes Lesley Kelly – her family has been farming almost as long as Saskatchewan has been a province.

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She told CTV News on Wednesday that any rail stoppage would heavily impact every single producer in the province and lead to desperate times the longer it remained an issue.

“We rely so heavily on rail transportation, 95 per cent of our crop is sent by rail, and if sent by a rail to ports and then exported across the world,” she said. “We are an export province, and we rely on getting our products to our customers to be able to get paid.”

The financial strain of any lockout on farmers is quite serious.

“We only have one revenue cycle, and it's right now,” Kelly explained.

“So we're penciling out if we don't get sales, if we can't ship our product, what the impact to our farm is. We've invested and borrowed over a million dollars to be able to grow this crop, and the likelihood of not being able to pay that back this year is frustrating and worrisome and causes us a lot of anxiety.”

Kelly represented industry-wide worries at a moment as businesses missed out on the approximately $1 billion worth of goods hauled daily by the two rail systems.

The Agricultural Producers Association of Saskatchewan (APAS) joined the chorus Thursday morning, saying the disruption casted a profound shadow of uncertainty over the operations and sustainability of the province’s grain producers.

“Producers rely on a functioning rail system to get their goods to the market,” APAS President Ian Boxall said in the statement.

“Without it, they are effectively left without a lifeline ... the Canadian grain industry, which saw exports worth $36.2 billion last year, is now facing direct losses of up to $50 million daily with Saskatchewan representing about 50 per cent, and no end in sight.”

Sask Wheat also added to the conversation, noting the sheer lack of alternatives to rail transportation for grain.

“Saskatchewan farmers are captive to rail to move their grain to export position,” the organization said in its release.

“As an additional 5,000 trucks would be needed to move approximately 200,000 tonnes of wheat and durum per week, there are simply not enough trucks to fill this demand and Saskatchewan’s distance from shipping locations would make it cost prohibitive.”

Both organizations called for the federal government to intervene in the labour dispute – adding their calls to those made by Saskatchewan Premier Scott Moe.

Speaking to CTV News Channel Thursday morning, Moe reiterated his ask for all parties to work together to come to an agreement – saying a work stoppage benefits no one.

“Canadians don’t want it, the federal government doesn’t want it, the rail companies don’t want it and I certainly I don’t think the union workers don’t want to be on the picket line,” he said.

“We have also been very clear that we simply cannot have a lockout in this nation … it’s a huge impact to a province like Saskatchewan on the export side.”

Moe commended the federal government in a post to X following MacKinnon’s announcement.

“The federal government today took the appropriate action, imposing binding arbitration on all parties and extending the current collective agreements to end the rail stoppage and ensure our Canadian products are moving to market again.”