One week of disruptions to Canada’s grains exporting supply chain loses up to $540 million in sales and most of them can’t be recovered according to a study commissioned by the Agriculture Export Coalition.
The analysis examined the economic impact of labour disruptions across rail and port operations during peak grain export periods and found that losses compound rapidly and fall disproportionately on farmers and exporters.
The coalition released the findings today as part of Too Much on the Line, a national campaign calling on the federal government to reform Canada's labour relations framework and reduce the risk of future supply chain shutdowns.
The coalition is encouraging Canadians to visit KeepGrainMoving.ca and send a letter to their Member of Parliament, adding that participation in the federal consultation process is critical to ensuring government decisions reflect the economic realities of Canada’s grain supply chain.
"Every time grain stops moving, the consequences are immediate and unrecoverable,” said Bruce Burrows, executive director of Grain Growers of Canada.
Missed sales, broken contracts, and a reputation as a reliable supplier take years to rebuild, he said.
“Canada cannot keep accepting this as the cost of doing business. There is simply too much on the line.”
Canada exports more than 70 per cent of its grain production and 94 per cent moves by rail. The analysis found that even the threat of disruption triggers losses, with up to $112 million in missed sales occurring before a work stoppage begins.
The federal government is conducting consultations on transport-industry labour relations and the export coalition wants to ensure good-faith bargaining by appointing a special mediator to oversee collective bargaining, manage timelines, and ensure progress.
It also wants resolutions to disputes before they escalate by providing the federal transport minister with authority to consider economic harm and refer disputes to binding arbitration when necessary.
“Canada’s customers expect reliability, and repeated disruptions put that at risk,” said Greg Northey, vice president of corporate affairs with Pulse Canada. “With so much on the line, this is a critical moment to ensure the right policy framework is in place.”
