Employee lockout hurting farmers, says union head

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Published: September 12, 2002

A labour dispute at the Port of Vancouver means farmers are paying more

to move their grain, says the union representing locked-out workers.

Grain that would normally move out of Vancouver is being rerouted to

the northern British Columbia port of Prince Rupert. That includes

grain shipped through the Canadian Wheat Board and non-board grain.

The detour will cost farmers more to ship grain.

“Farmers in southern Alberta and Saskatchewan, they have to pay $4.50

per tonne more freight rate to go up to Prince Rupert,” said

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federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million

Grainworkers Union Local 333 president Bob MacPherson.

Canadian National Railway spokesperson Jim Feeny said that is

incorrect.

“Over the last couple of years we have narrowed the spread between

Prince Rupert and Vancouver.

“We have worked to make Prince Rupert more competitive and on the CN

origins we have narrowed that spread to, on average, about $2.50,” said

Feeny.

A spokesperson for the CWB said the agency is working to reduce or

eliminate the extra fees.

“We have been negotiating with CN to minimize that impact,” said Louise

Waldman.

Farmers say they are tired of paying the extra costs associated with

labour disruptions in the grain transportation system.

“It just cuts that much more into a bottom line that isn’t very healthy

already,” said Agricultural Producers Association of Saskatchewan

president Terry Hildebrandt.

He said the grain companies have already announced they are increasing

their handling charges and now comes the news that it’s going to cost

more to ship grain to the West Coast.

“I don’t know how much more we can take. There’s just no margins in the

game now,” said Hildebrandt.

The Western Canadian Wheat Growers Association has sent a letter to

federal agriculture minister Lyle Vanclief requesting that Ottawa take

action to help settle the dispute, which began Aug. 26 when 650

Grainworkers Union members were locked out by the British Columbia

Terminal Elevator Operators.

“Another labour dispute at the West Coast is the last thing farmers

need right now,” said Western Canadian Wheat Grower Association

president Art Enns.

A spokesperson for Agricore United, which operates terminals at the

Port of Vancouver, said grain companies are negotiating with farmer

interests in mind.

“We’re trying to improve things so that we can enhance the returns to

the farmers of Western Canada,” said Murdoch MacKay.

He said operators have agreed to give terminal workers wage increases

and to put money into a fund for severance packages. In return they are

looking for more flexibility on working hours and other items he says

will lead to production improvements.

MacPherson said 100 percent of the union members rejected management’s

last proposal because the work scheduling and layoff recall practices

the grain companies are requesting are not acceptable. He said because

of the small crop the grain companies that own the five terminals in

Vancouver feel they can shut down their operations there for four to

six months, and move grain in the second half of the shipping year.

MacKay wouldn’t comment on that assertion, but said the Canadian Wheat

Board shipped half a million tonnes of grain to the West Coast in

August and he doesn’t expect the programs to be much bigger in upcoming

months.

“That’s something that Prince Rupert can handle very easily,” said

MacKay.

About the author

Sean Pratt

Sean Pratt

Reporter/Analyst

Sean Pratt has been working at The Western Producer since 1993 after graduating from the University of Regina’s School of Journalism. Sean also has a Bachelor of Commerce degree from the University of Saskatchewan and worked in a bank for a few years before switching careers. Sean primarily writes markets and policy stories about the grain industry and has attended more than 100 conferences over the past three decades. He has received awards from the Canadian Farm Writers Federation, North American Agricultural Journalists and the American Agricultural Editors Association.

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