The threat of a national rail strike is looming closer; WGEA says Canada is dropping the ball

The Teamsters Canada Rail Conference says the roughly 9000 CN and CPKC workers involved could walk out as of 12:01 am Thursday.

The Executive Director of the Western Grain Elevators Association (WGEA) Wade Sobkowich says a national rail strike involving both railways will have a major impact, as there is no Plan B.

According to the WGEA we move roughly 50 million tonnes of grain per day by rail in Canada.

Sobkowich says the railways on Tuesday started preparing for a work stoppage situation with both railways embargoing all Canadian-origin products.

"So we'll be playing catch up for the rest of the year and that means more grain that's going to have to move outside the peak price period. It's going to mean contract extension penalties. It's going to mean vessel demurrage. It's going to mean a longer period of time before farmers can deliver into their primary elevator, therefore a longer period of time before they get paid."

He says another key concern is the damage it will mean for Canada as a reliable exporter as customers will now have to look to other countries to fill their needs.

"That really hurts us because, you know, next time around when that same customer is looking at buying you know, are they gonna buy from the country and the supplier that delivered,or are they gonna buy from the country that dropped the ball. 

Sobkowich says more and more Canada is dropping the ball.

To hear Glenda-Lee's conversation with WGEA Executive Director Wade Sobkowich click on the link below