US fears impact on supply chain strikes CP railroad workers – National

Canadian teamsters and CP Rail joined forces for a work stoppage Sunday that halted trains across Canada and disrupted fertilizers and other shipments to and from the United States.

More than 3,000 Canadian Pacific Rail executives, engineers, train and yard workers represented by the Teamsters Canada Rail Conference are out of work after both sides were unable to reach a deal by midnight.

Both sides say they are still talking to federal mediators.

The Canadian Pacific covers much of the US Midwest and is a major shipper of potassium and fertilizer for agriculture. It also carries grain from the United States to its northern neighbor for domestic use and export. The railroad serves Dakotas, Minnesota, Iowa, Illinois, Wisconsin, Missouri and other states, according to a map on its investor website. CP also operates in New England and upstate New York, said spokesman Patrick Waldron.

CP says it is the leading carrier of potassium, a plant nutrient used in the production of multiple crops. The company says in investor documents that it produces 70% of the potash produced in North America, all from mines in Saskatchewan.

The railroad says it also carries fertilizers, including phosphate, urea, ammonium sulfate, ammonium nitrate and anhydrous ammonia. About half of their fertilizers come from processing plants in Alberta.

CP received 29% of its 2020 freight revenue from cross-border shipments between the US and Canada, said its investor website.

A long hiatus of fertilizer shipments could hurt U.S. farmers approaching the spring season. The shutdown could also exacerbate existing supply chain bottlenecks in the U.S. and Canada stemming from the COVID-19 pandemic.

US trains were not affected by the work stoppage, but the railroad could not make any transmissions between the two nations, Waldron said.

On Saturday, teammates said in a statement that the company had shut down workers, but later issued another statement saying workers were also on strike.

The original statement posted on the Teamsters Canada Rail Conference website late Saturday said the union wanted to continue negotiations, but the company “has chosen to endanger the Canadian supply chain and tens of thousands of jobs.”

“As Canadians struggle with an endless pandemic, exploding commodity prices and the war in Ukraine, rail drivers are adding an unnecessary layer of insecurity, especially for those who depend on the rail network,” Ausso said.

CP Rail, Canada’s second-largest railway operator, said it was the company that wanted to talk further, and the union that pulled its employees from work.

CP President Keith Creel said in a press release the union had “failed to respond” to a new offer presented by mediators before the midnight deadline.

“Instead, the TCRC has decided to withdraw its services before the deadline for a strike or lockout can legally take place,” he said. “The TCRC is well aware of the damage this reckless act is causing to the Canadian supply chain.

Labor Minister Seamus O’Regan called on both sides to continue negotiations.

Canadian and US supply chains have also been hit by truck convoy protests that blocked border crossings in February, and are now dealing with the effects, particularly on global fuel supply, of the Russian invasion of Ukraine and sanctions imposed by the US and his allies were set up.

All the disruptions have pushed inflation to its highest level since the early 1980s, with essentials such as food and fuel against some of the sharpest price increases.

The CP and the union have been negotiating since September, with wages and pensions being a snap. A clause about where employees take their federally mandated break periods is also an issue.

CP Rail says this is the fifth work stoppage since 1993.