AS DIFFICULT as the lockout might be for both sides directly involved
in the labour dispute at Vancouver’s grain handling terminals, sympathy
should be reserved for prairie grain farmers.
They are caught in a dispute they are powerless to control. Yet it may
end up hitting them the hardest financially if it is not corrected soon.
Additional shipping costs, demurrage for ships sitting idle in port and
future damage to the country’s reputation as a reliable supplier could
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be at stake.
Operators of the five west coast grain terminals, including
Saskatchewan Wheat Pool, Agricore United, Cargill Inc. and James
Richardson International, opted to lock out members of the Grainworkers
Union in Vancouver late last month.
The dispute is primarily over scheduling issues. The terminal owners
say they must improve efficiency and require more flexibility in
assigning workers – a contention the union rejects and says will lead
to layoffs.
Fortunately, grain shipments to the West Coast do not normally begin in
earnest until October. As well, demurrage charges haven’t been an issue
so far and, ironically, the poor prairie harvest this year will
mitigate damages.
The drought across much of the central prairies has drastically reduced
yields; so much so that the Canadian Wheat Board has pulled back as a
seller in the international marketplace and will focus on its preferred
customers this year.
Although there is less grain to move, the situation should also sound a
warning. The difficult year means farmers can ill afford to have
another financial load strapped to their shoulders.
Grain can move through the northern British Columbia port of Prince
Rupert through the lockout period. But that too, will add to farmers’
costs.
Freight rates vary according to region, but Canadian National Railway’s
estimate was that shipping through Prince Rupert would add $2.50 per
tonne for most Alberta and Saskatchewan farmers. Others in the industry
have estimated higher costs.
So, the regions hardest hit by this year’s drought are on the hook
again and are likely to be most affected by the transportation charge
increases.
Farmers have some stake in which side wins the negotiations. The
outcome could mean a more effective and more efficient grain shipping
system.
But as time drags on and costs pile up, it is not likely they will have
much sympathy for either side. More likely they’ll feel like they’re
being treated as bargaining chips.
It is time the federal government designated grain handling as an
essential service. We cannot afford the alternative.
