Fertilizer Canada Warns Threat of Rail Labour Disruption Already Impacting Fertilizer Shipments

Ottawa, ON, CN Railway and Canadian Pacific Kansas City (CPKC) issued embargoes immediately halting certain fertilizer shipments ten days ahead of an anticipated labour disruption. The threat of a work stoppage has already begun to impact the movement of fertilizer and our industry anticipates further embargoes and slowdowns in rail service. A work stoppage that prevents the transportation of fertilizer will have potentially disastrous effects on crop yields and food security.

Fertilizer Canada is calling on the federal government and Labour Minister Steven MacKinnon to take immediate action to assist all parties, CN, CPKC, and Teamsters Canada Rail Conference (TCRC), in reaching agreements, including ordering a directive for binding arbitration that prohibits TCRC from undertaking strike action and CN and CPKC from lockout action.

According to recent polling, over half of Canadians (55 per cent) said they believe the government has a role to play in the collective bargaining process and should step in to prevent impacts on Canada’s economy.

“The long-lasting and cascading impacts of labour disruptions are felt before and after the stoppage even takes place,” says 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.”

Fertilizer Canada urges the federal government to amend the Canada Labour Code to strengthen the bargaining process. According to polling, three in four Canadians (75 per cent) agree we need to strengthen the bargaining process for those working in Canada’s supply chains to prevent disruption and their consequences.

Fertilizer Canada is also asking the federal government to recognize fertilizer as an essential good critical to domestic and global food security that should continue to move during work stoppages. Canadians support this, with one in eight (79 per cent) saying they believe products vital to domestic and global food security should continue to move during a work stoppage.

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

Railways begin slowing down service ahead of a work stoppage, including issuing embargoes that halt the movement of certain products. Embargoes issued today impact essential ammonia fertilizer products. Service for all products will also begin to slow three to five days ahead of a work stoppage and take three to five days to reach regular service once it ends.

75 per cent of all fertilizer produced and used in Canada is moved by rail. There are very limited alternatives to rail to ship fertilizer products. Canadian, American, and international farmers rely on Canadian fertilizer to maximize crop yields. Fertilizer is responsible for half of the world’s current food production.

Polling was conducted by Abacus Data with 1,500 Canadian residents aged 18 and over from May 10^th to 15^th, 2024. The margin of error for a comparable probability-based random sample of the same size is +/ 2.45%, 19 times out of 20.

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.