October 8, 2008
Canada's Seaway grain movement must continue amid labour dispute
The Canadian Wheat Board, or CWB, and other key stakeholders in the western Canadian grain industry have urged management and labour at the St. Lawrence Seaway to quickly reach a negotiated settlement that would ensure an uninterrupted flow of grain to export markets worth C$2 to C$3 billion, a CWB news release said Tuesday (October 7).
In the event that talks break down, the CWB has also urged Canadian Labour Minister Jean-Pierre Blackburn to take immediate action that will enforce legal provisions designed to keep grain exports moving.
"Because of its economic importance, grain shipping has been deemed an essential service that must legally continue despite work stoppages," said Ian White, chief executive officer of the CWB. "If grain movement is impeded, it will have immediate and serious consequences for farmers and shippers during this crucial post-harvest period."
The St. Lawrence Seaway Management Corporation and the Canadian Auto Workers union have reached a critical stage in contract negotiations this week, raising concerns about the possibility of strike action by Seaway operations, maintenance and clerical staff, the release said.
More than six million tonnes of western Canadian grains and oilseeds move through the Seaway each year. Harvest of the western Canadian crop is virtually complete, with estimates pointing at one of the largest crops in 10 years.
October through December is critical grain shipping months, the release said. Without the Seaway, it would be impossible to move a significant portion of the crop to market as there is not sufficient capacity in other export corridors to take up the slack.
"Costs to farmers and shippers would be high in terms of contract execution costs, vessel demurrage, logistics and potential lost sales," White said. "Canada's reputation as a reliable supplier of grain would be damaged and prices could be pressured downward due to an artificial glut of domestic supply caused by inability to access the Seaway."
The CWB release said the Canada Labour Code clearly provides for the normal movement of grain vessels through the Seaway in the event of labour disruptions. The CWB has requested confirmation from Seaway management and from the employees' union that they will respect these legal provisions.
