The debate over hours of work in country grain elevators reveals unwavering, opposing positions.
The grain industry told a federal hearing in Calgary last week that thin profit margins in grain companies prohibit them from paying overtime or hiring additional staff during busy spring and fall periods.
Union officials said years of record profits indicate a financially healthy industry that can afford more staff and overtime pay.
Vancouver lawyer Stephen Kelleher was appointed by labor minister Lawrence MacAulay to investigate union demands for overtime pay, more staff and shorter hours for elevator workers. Hearings were also held in Regina, Winnipeg and Saskatoon.
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The Canada Labor Code granted grain companies an exemption from standard work hours in 1980. For 10 weeks in the spring and fall, elevator managers and assistant mangers work 48 hours a week without overtime pay. The work week may be extended to 60 hours per week with the extra time worked paid in time off during quieter seasons.
Bruce Johnson, of the Western Grain Elevators Association, which represents nine companies and 1,100 elevators, said workloads in country elevators are unique and require flexibility by staff to provide better service to farmers. Extra money or more staff would increase costs across the board.
The average wage for an elevator manager is $52,885, not including incentives or bonuses. Paying out the overtime could cost companies $10 million extra, he said. Additional staff have been hired during busy seasons but casual workers can’t do some of the more skilled jobs required of a manager.
“Anything that increases the cost of grain is not in the interest of western Canadian agriculture,” said Johnson.
In addition, extra money for salaries could lower the value of co-operative grain companies’ shares and might force the closure of some marginal country elevators. Layoffs in slower periods or salary reductions to cover the cost of overtime payments could also result.
Working for nothing
Hugh Wagner, general secretary of the Grain Services Union, said the extended hours add up to 160 hours of free work from employees.
“We do not propose to confine or restrict the hours of service available to farmers. We are not opposed to longer hours,” said Wagner.
“In 1997, $20 to $26.50 per hour is not a high wage, not when you consider the range of skills and range of tasks and commitment these people have to the industry,” he said.
“These are good wages, these are not high wages.”
As long as the present situation holds, employers are not motivated to offer more, he said.
Eldon Feniak, an assistant manager for Alberta Wheat Pool at Willingdon, said morale among workers is dropping because “four weeks of work without compensation is not fair or just.”
Two groups of farmers at the hearing said if the status quo were changed, the farmer would ultimately pay more for grain handling.
“The farmer’s wage is the least and he takes the most risk in the whole chain,” said Alan Holt, president of the Wild Rose Agriculture Producers, a farm lobby group.
Peter Galloway, of Fort Saskatchewan, said as a farmer he has no control over additional costs like wages.
Speaking for a group of five farmers from central Alberta and northern British Columbia, he said the labor code does not need to be changed.
“If the provisions regarding this issue need to be addressed to increase or decrease hours in question, the appropriate forum is the collective bargaining table,” said Galloway.
(Staff at The Western Producer are members of the Grain Services Union.)
