Fertilizer Canada Calling on the Federal Government to Take Immediate Action to Prevent Rail Work Stoppage

OTTAWA, ON, Fertilizer Canada is urgently calling on the federal government to take immediate action to prevent a work stoppage on both railways through binding arbitration that prohibits Teamsters Canada Rail Conference (TCRC) from undertaking strike action and CN Railway and Canadian Pacific Kansas City (CPKC) from lockout action. A work stoppage at both railways will have devastating impacts on Canada's economy, our reputation as a reliable trading partner, and global food security.

"The time for action is now," says Karen Proud, President and CEO of Fertilizer Canada. "We can no longer patiently wait for a resolution. The federal government must protect Canada's economy and food security by ordering binding arbitration."

"The time for action is now," says Karen Proud, President and CEO of Fertilizer Canada.

Disruptions impacting all rail services across the country will cost the fertilizer industry an estimated $55-63 million per day in lost sales revenue, not including logistical and operational costs. The railways move an average of 69,000 Mt of fertilizer product per day, which is equivalent to four to five trains.

"In the last seven years, Canadian supply chain labour disruptions have cost the fertilizer industry nearly a billion dollars," says Proud. "These stoppages are doing immense damage to our reputation as a reliable trading partner. Our customers, who rely on Canadian fertilizer products, are being forced to turn to our competitors in Russia, Belarus, and China. We can't afford for our railways to shut down, and we can't afford a passive approach to our supply chains any longer. We need long-term solutions."

The fertilizer industry is among the first to experience slowdowns during a rail labour disruption. On August 12th, the movement of some ammonia fertilizer products was halted when they were embargoed. Leading up to the potential labour disruption, the railways have issued further embargoes, including U.S. railways halting shipments to Canada, with service beginning to slow down.

75 per cent of all fertilizer produced and used in Canada is moved by rail, with minimal transportation alternatives. Canadian, American, and international farmers rely on Canadian fertilizer to maximize crop yields. Notably, 90 per cent of Canadian-produced fertilizer destined for the U.S. market is delivered by rail, underscoring the importance of a reliable rail network for North American agriculture.

Fertilizer plays an important role in food security and is responsible for half of the world's current food production. There is a short window to apply fertilizer, which requires reliable supply chains to deliver products to farmers when they need it.

Both railways have served lockout notices to TCRC beginning August 22nd at 00:01 ET and TCRC has served a strike notice to CPKC also beginning August 22nd at 00:01 ET.

Fertilizer Canada represents producers, manufacturers, wholesale and retail distributors of nitrogen, phosphate, potash and sulphur fertilizers. The fertilizer industry plays an essential role in Canada's economy and is committed to supporting the industry through innovation, stewardship, safety and security. As the foundation of Canada's agri-food sector, we apply innovative solutions that positively impact agriculture, the economy, and the social fabric of Canadian life.