Rail troubles mitigated by #STOPTHESTRIKE
BY: Jeff English, vice president, marketing and communications for Pulse Canada
Over the summer of 2024, Canadian agriculture faced a serious threat. The looming possibility of a strike or lockout on both of the country’s major railways jeopardized the pulse sector’s access to vital export markets. In response, the “Stop The Strike” campaign was launched to urge the federal government to intervene and prevent a devastating work stoppage. Thanks to the collective efforts of 27 national and regional agricultural groups, including Pulse Canada, Canadian Pulse and Special Crops Trade Association, and others, the campaign achieved its goal.
The campaign, launched on Aug. 9, employed a straightforward yet powerful strategy: make it politically impossible for the government to ignore the impending crisis. A bilingual website served as the campaign’s hub, enabling farmers to send 2,485 letters directly to key federal decision-makers. Through the use of social media, a countdown clock tracking the time left until the potential rail disruption, and a virtual press conference attended by over 100 media and agriculture industry representatives, the message reached far and wide.
As the work stoppage approached, Canadian Labour Minister Seamus O’Regan initially expressed his intention not to intervene. However, less than 24 hours into the disruption, the sustained pressure from the coalition prompted the minister to invoke Section 107 of the Canadian Labour Code, forcing the parties into binding arbitration – exactly what the campaign had called for.
The victory prevented a prolonged total rail shutdown that would have cost the Canadian agriculture industry billions. Thanks to the efforts of our pulse growers and allied organizations, vital rail services resumed operation quickly, ensuring that our crops continued to move to market without delay.
This was a win for every farmer who relies on efficient rail transport to reach international markets. It’s a clear demonstration of the power of collective advocacy, and a reminder that when we work together, we can protect the future of Canadian agriculture.
Flipping the Switch for Canadian Ag
This is the same spirit behind our efforts to create efficiencies on Canada’s rail lines. Pulse Canada helped found a coalition of 21 national and provincial associations that rely on rail transportation to deliver our crops and fertilizer to market. The “Flip the Switch” group advocates for rail transportation that is competitive, cost-effective and efficient.
In 2023, our group advocated for a pilot trial to increase the extended interswitching radius from 30 kilometres to 160 kilometres for a period of 18 months. This measure was introduced and passed by the federal government, serving two key purposes: it enabled shippers to utilize the services of the competing Class I railway within the extended interswitching radius, and it empowered shippers to negotiate better rates and services with their current providers by leveraging the threat of extended interswitching. Our data shows that extended interswitching provides great benefits to shippers who were able to access a more competitive transportation network.
While this pilot was a good first step, it’s insufficient for growers and shippers to fully realize the benefits of extended interswitching. Shippers typically sign 12-month contracts, limiting their ability to leverage this tool effectively. Additionally, concerns about jeopardizing future relationships with current shipping providers may deter shippers from using extended interswitching as a negotiating tool. That’s why our coalition is redoubling efforts to extend the pilot by an additional 30 months with a pathway to permanency. This extension will allow shippers to fully benefit from extended interswitching and provide the government with ample data to evaluate its effectiveness as a pro-competition tool. We are confident that the data will show that extended interswitching benefits shippers and improves rail service.
Open Trade at Risk
Bill C-282, currently under review in the Senate, seeks to prevent the government from negotiating any increase in import quotas for supply-managed sectors, such as dairy, poultry and eggs. This bill effectively restricts the ability to grant additional market access for these products in future trade deals.
By limiting flexibility in trade negotiations, Bill C-282 will complicate Canada’s ability to secure and expand international trade agreements. For instance, ongoing trade negotiations with the United Kingdom and future updates to agreements like the Canada-United States-Mexico Agreement (CUSMA) could be affected, as these countries may view Canada as unwilling to compromise on agricultural access.
Canada’s agri-food exports were valued at $92.8 billion in 2022. With 90 per cent of Canadian farmers depending on trade, there’s no doubt this bill will undermine their ability to compete globally.
That’s why Pulse Canada, both as an organization and through our strategic partnership in the Canadian Agri-Food Trade Alliance (CAFTA) has been working to have the bill rejected by the Senate. We have shared our sector’s position at the Senate trade committee, and through letters and direct representations to senators. The end goal is to ensure that Bill C-282 never becomes law and cannot undermine Canada’s current and future trade negotiating positions.
Pulse Canada will continue to advance these and other files that have a real impact on the livelihoods of our members. To learn more about these or any initiatives we undertake on your behalf, please get in touch at jenglish@pulsecanada.com for more information.