EYE ON OTTAWA – Labour, Trade and Transportation Issues on the Agenda This Fall 

PORT AND RAIL TROUBLES MITIGATED BY #STOPTHESTRIKE

The recent strike at the Port of Montreal, combined with the lockout at west coast terminals, wreaked havoc on Canada’s pulse sector. While movement of bulk grain at ports is protected, movement of containerized grain like pulse crops is not. With roughly 1/3 of Canada’s pulse crops exported via shipping container, our sector is disproportionately impacted by disruptions at container terminals.

That is why Pulse Canada joined with likeminded groups to raise the importance of resolving the strikes and lockouts. This included media statements, the reactivation of our #StopTheStrike campaign, as well as direct calls with politicians and officials in Ottawa.

This month, the federal government invoked Section 107 of the Canada Labour Code to get goods moving. While our sector called for and welcomed this measure, it has become clear that labour issues are an ongoing threat to the stability and growth of Canada’s pulse sector and its economy at large.

This was just the latest in a laundry list of disruptions that cost the sector real dollars and damaged its reputation. Earlier this summer, Canadian agriculture faced a serious threat with the looming possibility of a strike or lockout on both of the country’s major railways. In response, the "Stop The Strike" campaign was launched to urge the federal government to intervene and prevent a devastating work stoppage. Thanks to the collective efforts of 27 national and regional agricultural groups, including Pulse Canada, Canadian Pulse and Special Crops Trade Association, and others, the campaign achieved its goal.

The campaign, launched on August 9, employed a straightforward yet powerful strategy: make it politically impossible for the government to ignore the impending crisis. A bilingual website (stopthestrike.ca) served as the campaign’s hub, enabling farmers to send 2,485 letters directly to key federal decision-makers. Using social media, a countdown clock to track the time left until the potential rail disruption, and a virtual press conference attended by over 100 media and agriculture industry representatives, the message reached far and wide.

As the work stoppage approached, Labour Minister MacKinnon initially expressed his intention not to intervene. However, less than 24 hours into the disruption, the sustained pressure from the coalition prompted the Minister to invoke Section 107 of the Canadian Labour Code, forcing the parties into binding arbitration—exactly what the campaign had called for.

The victory prevented a prolonged total rail shutdown that would have cost the Canadian agriculture industry billions. Thanks to the efforts of our pulse growers and allied organizations, vital rail services resumed operation quickly, ensuring that our crops continued to move to market without delay.

While the resumption of operations at port facilities this month and service on the railways over the summer were positive outcomes for Canada’s pulse sector, relying on political intervention is not a sustainable, long-term solution. As stated by Pulse Canada Chair Terry Youzwa and CPSC President Murad Al-Katib, ““It is time for a long-term solution to ensure that labour issues can be addressed in an appropriate, timely manner, without impacting the thousands of businesses and millions of families who rely on a functioning supply chain to make a living.”

FLIPPING THE SWITCH FOR CANADIAN AGRICULTURE

As a founding member of the “Flip the Switch” group, Pulse Canada advocates for rail transportation that is competitive, cost-effective, and efficient. In 2023, our group advocated for a pilot trial to increase the extended interswitching radius from 30 kilometres to 160 kilometres for a period of 18 months. This measure was introduced and passed by the federal government, serving two key purposes: it enabled shippers to utilize the services of the competing Class 1 railway within the extended interswitching radius; and it empowered shippers to negotiate better rates and services with their current providers by leveraging the threat of extended interswitching. Our data shows that Extended Interswitching provides great benefits to shippers who were able to access a more competitive transportation network.

While this pilot was a good first step, it is insufficient for growers and shippers to fully realize the benefits of extended interswitching. Shippers typically sign 12-month contracts, limiting their ability to leverage this tool effectively. Additionally, concerns about jeopardizing future relationships with current shipping providers may deter shippers from using extended interswitching as a negotiating tool. That’s why our coalition is redoubling efforts to make the pilot permanent. This will allow shippers to fully benefit from extended interswitching and provide the government with ample data to evaluate its effectiveness as a pro-competition tool. Earlier this month, Pulse Canada Chair Terry Youzwa was invited to appear at the Agriculture Committee to outline the benefits extended interswitching can provide to our sector, as staff and directors continue to meet with politicians and officials in Ottawa to make our case.

Pulse Canada will continue to advance these and other files that have a real impact on the livelihoods of our members. To learn more about these or any initiatives we undertake on your behalf, please get in touch at jenglish@pulsecanada.com