Canadian rail strike leaves U.S. commodities unable to move; agricultural interests push for a resolution

As U.S. farmers prepare for expected bumper crops of corn and soybeans, the shutdown of Canada's two largest railways threatens a chunk of their incomes. The fallout from Canada's unresolved rail closures stretches beyond agriculture. It could have "dire consequences for North America’s economy, threatening deliveries of cars, timber and petroleum products," reports Lauren Kaori Gurley of The Washington Post. "The U.S. railway Union Pacific has said a shutdown would sideline more than 2,500 railcars that normally cross the U.S.-Canada border each day."

The two Canadian railways, the Canadian Pacific Kansas City railroad and the Canadian National Railway have been unable to strike a deal with Teamsters Canada "despite days of heated negotiations," Gurley writes. "The Teamsters say the railways are requesting that the union make concessions 'on crew scheduling, rail safety, and fatigue management' — echoing union concerns at the heart of a threatened 2022 rail strike in the United States." The two railroads insist they have offered "significant pay increases and addressed concerns about scheduling."

U.S. agricultural interests are pushing hard for a resolution. Gurley reports, "In a letter addressed to President Joe Biden as well as other U.S. and Canadian officials, dozens of trade associations, including the American Farm Bureau Federation and the National Cotton Council, said a rail shutdown would trigger 'harmful consequences for Canadian and American agricultural producers, the agricultural industry, and both domestic and global food security.'”

Earlier this week, U.S. companies worked to slow the flow of goods to the U.S. Canadian border, which means "that massive flow of goods has screeched to a complete halt," Gurley explains. But the problems go both ways. "Murad Al-Katib, chief executive of AGT Foods, one of the world’s largest suppliers of staple foods such as beans and wheat, said food supply chains would be 'immediately disrupted,' noting that many commodities — such as peas, lentils, chickpeas and durum wheat used for pasta — travel across the Canadian border to U.S. processing and packaging facilities."

Meanwhile, Teamsters Canada said that it won't agree to the rail companies' "grueling schedules," and in turn, both railway companies said "they’ve made generous offers to the union," Gurley writes. "The Canadian government has rejected calls to intervene, but Canadian Prime Minister Justin Trudeau urged parties to 'get to a resolution.'"