Canadian Grain Terminal Workers Strike, Posing Risk to Exports

By Robb M. Stewart

OTTAWA--Grain terminal workers on Canada's west coast walked off the job, threatening exports of canola and other crops during the busy harvest season.

Members of Grain Workers Union Local 333 went on strike Tuesday morning after talks with the Vancouver Terminal Elevators' Association broke down last week. A 72-hour strike notice was issued by the labor union Saturday morning.

The work stoppage affects six terminals at Port of Vancouver that are critical for exports of canola, wheat, barley and other grains from Canada's prairies. The port warned of vessel delays and heightened anchorage demand if the disruption to bulk grain exports continues.

Grain Growers of Canada, which represents more than 65,000 producers, said the strike will halt nearly 100,000 metric tons of grain arriving at the terminals each day, resulting in a loss in potential daily exports of 35 million Canadian dollars, the equivalent of about $26 million.

Grain farmers in the prairies rely on the Port of Vancouver to handle the majority of the grain they grow. Grain Growers said that last year the port's terminal elevators received just over half of all grain produced from across Canada.

Chris Davison, chief executive of the Canola Council of Canada, said access to export markets is critical for the canola industry and the strike threatens significant financial and reputation damage at a time when farmers, processors and exporters already face market challenges and headwinds. Davison joined other business groups in urging the federal government to act to resolve the strike.

Labor Minister Steven MacKinnon in a tweet on X said that after speaking Monday with the union and the Vancouver Terminal Elevators' Association, the two sides agreed to resume negotiations alongside federal mediators.

"After a bumper crop summer, Canadian farmers and businesses need to get their harvest to market. Parties need to work hard to get a deal," MacKinnon said.

The strike is the latest disruption to Canada's supply chains and trade.

The government last month forced Canadian National Railway, Canadian Pacific Kansas City and the union representing almost 10,000 rail workers into binding arbitration, ending a shutdown of freight rail operations in the country.

Canada also has been hit by recent labor disputes at ports on the west coast and on the Canadian side of the St. Lawrence Seaway that dented the flow of goods and supply chains.

Farmers and companies also are bracing for a possible trade hit after China launched investigations into some agricultural and chemical imports from Canada following a move by Ottawa to implement a 100% surtax on all Chinese-made EVs, and a 25% surtax on imports of steel and aluminum products from China.

Wade Sobkowich, executive director of the Western Grain Elevator Association, which represents large shippers of bulk grain exports from Western Canada, said Canadian grain destined for markets over the Pacific will largely sit idle wherever it is in the supply chain until the strike ends and there will be limited ability to mitigate the impacts of the strike through other corridors. Grain is sold three, six and nine months in advance.

Prince Rupert Grain on the west coast is still operating but it has its own program for loading vessels up to the capacity of the CN rail line running to it, Sobkowich said. Grain destined for the U.S. through Thunder Bay, Ontario, and eastern Canada, and for domestic consumption also will continue to move, but he said there is little to no capacity available for third parties.

The Grain Workers Union represents roughly 750 workers at eight grain terminals on British Columbia's coast, including at Prince Rupert.

Write to Robb M. Stewart at robb.stewart@wsj.com

(END) Dow Jones Newswires

September 24, 2024 13:26 ET (17:26 GMT)

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