The trains of Canadian Pacific (CP), one of Canada's main railway companies, are at a standstill on Sunday due to a labor dispute, disrupting the flow of agricultural raw materials at a time when their prices are already on the rise .
In negotiations for months on wages, benefits and the pension plan, management and unions cannot agree.
On Wednesday, the company announced the triggering of a "
lockout
" for Sunday.
This procedure allows the management to decide unilaterally to cease all activity in response to a conflicting social situation with the employees.
In response, the union called a strike on Sunday.
The two parties, "
very disappointed
" with the turn of events, blamed each other for the failure of the negotiations which are due to resume on Sunday.
"
We tried by all means to find common ground until the last moment, but it did not work because of the intransigence of Canadian Pacific
", explained to AFP Stéphane Lacroix, responsible for the Teamsters union.
For his part, Keith Creel, CEO of CP, said in a press release that the union had “
not responded to the company's latest offer presented to it by federal mediators
”.
The CEO also mentions the "
damage
" that the train stop will "
cause to the Canadian supply chain
", mainly affecting the transport of cereals, potash and coal.
Canadian Labor Minister Seamus O'Regan Jr said on Twitter that he was "
monitoring the situation closely
" and "
expecting
" both sides "
to continue to work until they reach an agreement
".
The second-largest country in the world by area, Canada relies heavily on rail to transport goods and manufactured goods.
CP's network crosses much of southern Canada and extends to Kansas City, Missouri in the central United States.
In particular, the company transported more than 30 million tonnes of grain in the 2020-2021 financial year.
This conflict comes to hit an already struggling supply chain, after floods in the west of the country at the end of 2021 which damaged the rail network and complicated access to the major port of Vancouver.
In recent days, farmers and ranchers have warned that this crisis could be devastating.
“
The agricultural sector is already experiencing supply problems exacerbated by the war in Ukraine and can no longer withstand supply chain disruptions
,” said Karen Proud, President of Fertilizer Canada.
Cattle farmers are worried about feed, as extreme drought last summer led to a shortage.
They now depend on corn shipments from the United States through the CP network.
