August 29, 2024

Canadian Meat Council urges Canada's government to prevent economic damages from national rail strike

In anticipation of a national rail strike in Canada, the Canadian Meat Council (CMC) and the Canadian Pork Council (CPC) have called on the country's federal government to employ section 107 of the Canada Labour Code to avoid the unprecedented damage to industry this disruption to service could cause.

"Canada's red meat processors need stable, reliable supply chains to run their businesses. Another interruption in service will result in millions of dollars in losses, irreversible reputational damage, environmental disposal challenges, and enormous waste," Chris White, chief executive of the Canadian Meat Council said in a release.

Employing section 107 would direct the Canada Industrial Relations Board (CIRB) to help parties reach an agreement under binding arbitration and suspend the ability for either lockouts or strikes pending an agreement, the release noted. This would provide needed certainty to Canadian farmers and processors, and their customers around the globe.

The Port of Vancouver strike last summer disrupted $10.7 billion dollars' worth of trade during the 35 days of strike action. The impacts of two Class 1 railways striking at once will have even worse, unprecedented ramifications, CPC said in a release.

Some processing plants anticipate weekly losses of up to $3 million dollars. The initial impact will be a delay in customer deliveries, followed by a plant shutdown within seven to 10 days of strike action. Once the rails resume, it will take 2-5 weeks for plants to ramp back up to normal capacity.

"The Canadian pork industry relies on the seamless operation of our transportation networks to feed our animals and deliver high-quality products to global markets. The ongoing rail and port disruptions threaten the livelihood of our producers, the welfare of our animals, and Canada's reputation as a reliable trading partner," said René Roy, chair of Canadian Pork Council, in a release.

Roy added that it's crucial the government takes action to ensure the movement of perishable goods like pork and essential supplies like animal feed.

"The feed our pigs rely on to survive is shipped by rail, and without a reliable and steady supply, their welfare is at risk," Roy said. "The stakes are simply too high to allow these disruptions to go unaddressed."

- Pork Business