Fertilizer Canada request federal action as railroads issue embargoes ahead of possible strike

HOUSTON (ICIS)–Industry group Fertilizer Canada has requested federal authorities take action as CN Railway and Canadian Pacific Kansas City have issued embargoes immediately halting certain fertilizer shipments ahead of an anticipated labor strike.

Fertilizer Canada is calling on the federal government and Labour Minister Steven MacKinnon to assist all parties and the Teamsters Canada Rail Conference (TCRC), in reaching agreements.

Further, it is asking that there be a directive for binding arbitration that prohibits TCRC from undertaking strike action and the railroads from lockout action.

The railroads have said they could lock out workers on 22 August if union leadership and the companies are unable to achieve immediate progress or reach a negotiated settlement or agree upon binding arbitration.

Fertilizer Canada said that embargoes issued 12 August impact essential ammonia fertilizer products.

In addition, service for all products will also begin to slow three to five days ahead of a work stoppage and take between three to five days to reach regular service upon conclusion.

The group said the threat has already begun to impact fertilizer movement and the industry anticipates further slowdowns.

It noted that a work stoppage which halts nutrient transportation will potentially have disastrous effects on crop yields and food security.

It further stated that according to recent polling that 55% of Canadians believe the government has a role to play in the collective bargaining process and should step in to prevent impacts.

“The long-lasting and cascading impacts of labor disruptions are felt before and after the stoppage even takes place,” says Karen Proud, Fertilizer Canada president and CEO.

“We have had the threat of a work stoppage hanging over our heads since the beginning of the year. Farmers around the world rely on Canada’s fertilizer industry to maximize crop yields, and the fertilizer industry relies on rail to get our products to market.”

The group is urging the federal government to amend the labor code to strengthen the bargaining process and also recognize fertilizer as an essential good critical to food security that should continue to move during work stoppages.

“Canada’s reputation has been damaged by the numerous supply chain disruptions in recent history,” Proud said.

“This uncertainty gives our international competitors like Russia and China an advantage. We need swift action to protect Canada’s reputation as a reliable trading partner.”

75% of all fertilizer produced and used in Canada are moved by rail with limited alternatives to rail. Not only does this supply support to Canadian farmers, but US and international growers also rely on this flow of fertilizer.

Fertilizer Canada represents producers, manufacturers, wholesale and retail distributors of nitrogen, phosphate, potash and sulphur fertilizers.