Threat of Railway Work Stoppage Already Impacting Fertilizer Movement

The possibility of railway labour disruption next week is already negatively impacting the movement of fertilizer, says a national industry organization. 

Fertilizer Canada said both CN Railway and CPKC issued embargoes Monday to immediately halt certain fertilizer shipments ahead of a potential work stoppage on Aug. 22.  

Railways typically begin slowing service ahead of a work stoppage, including issuing embargoes that halt the movement of certain products. The embargoes on Monday impact ammonia fertilizer products, with service for all products expected to slow three to five days ahead the Aug. 22 deadline, Fertilizer Canada said in a release. 

Further, it will take another three to five days for rail service to ramp back up to regular levels once the work stoppage ends, the organization said. 

"The long-lasting and cascading impacts of labour disruptions are felt before and after the stoppage even takes place," said Karen Proud, President and CEO of Fertilizer Canada. "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." 

Almost 10,000 CN and CPKC workers – members of the Teamsters Canada Rail Conference (TCRC) – will be in a strike or lockout position as of Aug. 22 after the Canadian Industrial Relations Board ruled on Friday no services need to be maintained during a railway strike or lockout to protect Canadian public health and safety.   

Both CN and CPKC issued news releases on Friday warning they intend to lock workers out if new contract agreements cannot be reached. Workers in turn have twice voted in favour of strike action. 

In addition to asking Ottawa to assist the railways and workers in reaching a new contract agreement, Fertilizer Canada is also requesting the federal government recognize fertilizer as an essential good critical to domestic and global food security that should continue to move during work stoppages. 

An estimated 75% of all fertilizer produced and used in Canada is moved by rail, with limited other transportation options, Fertilizer Canada said.