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DTN Headline News

Top 10 Ag Stories of 2024: No. 10

18-Dec-2024
04:52:00

Editor's Note: Each year, DTN publishes our choices for the Top 10 ag news stories of the year as selected by DTN analysts, editors and reporters. This year, we're counting them down from Dec. 18 to Dec. 31. On Jan. 1, 2025, we will look at some of the runners-up for the year. Today, we start the countdown with No. 10: Labor unrest heats up in the United States and Canada, affecting agriculture and trade.

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There appeared to be the most labor unrest in decades on both sides of the United States/Canada border, at ports and on railways, leading to an impact on agriculture and trade. Here are some of the major actions/strikes/lockouts and why they mattered to agriculture and exporters.

TEAMSTERS, RAILWAYS IN CANADA

The first hint of labor issues this year was in late February when Teamsters Canada Rail Conference (TCRC) gave a notice of dispute when contract negotiations of 9,300 union members with the Canadian National Railway (CN) and Canadian Pacific Kansas City Railway (CPKC) broke down. This dispute filing opened the door to a possible strike in May.

In early May, Canada's Federal Labour Minister Seamus O'Regan asked the Canada Industrial Relations Board (CIRB) to look at whether the strike would have safety implications. On July 12, 2024, CIRB provided an update to the CN and CPKC on the timing of its decision regarding the Minister of Labour's referral about the question of essential services.

The CIRB advised CN and CPKC that it intended to make that decision by Aug. 9, 2024, and in the event a decision was not made by Aug. 9, it would provide another update. The CIRB has advised it would issue a decision without holding oral hearings.

On Aug. 9, CIRB ruled "a work stoppage on Canadian National and Canadian Pacific Kansas City would not cause an immediate threat to public health and safety and that commodities transported on Canadian rails are not considered essential services because 'reasonable alternatives' exist through long-haul trucking." Canadian railways haul more than CDN $350 billion worth of goods and more than half of the country's total exports each year, including ag products, according to the Railway Association of Canada.

As the clock struck 12:01 EST on Aug. 22, the CPKC and CN railways locked out union workers.

A last-minute meeting of Canada's Labour Minister Steven MacKinnon (who had replaced O'Regan in July) with the Teamsters Canada Rail Conference and CPKC on Aug. 21, and one with TCRC and CN on Aug. 20, proved to be unsuccessful in finding a resolution to contract negations, which had turned contentious.

After a tumultuous week of rail worker stoppage between TCRC and CPKC and CN railways, CIRB on Aug. 24 forced binding arbitration on all parties, forcing union workers to return to work.

PORT STRIKE IN U.S.

International Longshoremen's Association (ILA) and the United States Maritime Alliance Ltd. (USMX) reported on Sept. 15 that they would not reach an agreement on their current contract that expired at the end of the month, opening the door for a strike at East Coast and Gulf Coast ports.

At 12:01 AM on Oct. 1, 2024, the ILA went on strike. This strike affected soybeans, soybean meal and other agricultural products that are exported via container. Approximately 5-6% of total soybean exports would be affected by a strike on the East and Gulf coasts. It also would have a significant impact on chilled or frozen meat, eggs, etc. that are exported from the U.S.

On the evening of Oct. 3, the strike came to an end when the ILA announced, "International Longshoremen's Association (ILA) and the United States Maritime Alliance, Ltd. (USMX) have reached a tentative agreement on wages and have agreed to extend the Master Contract until Jan. 15, 2025, to return to the bargaining table to negotiate all other outstanding issues. Effective immediately, all current job actions will cease and all work covered by the Master Contract will resume."

CANADA PORT STRIKES

Meanwhile in Canada, Grain Workers Local Union (GWU) 333 went on strike on Sept. 24, stopping work at five grain terminals in Vancouver. At the time, Grain Growers Canada said that "Grain farmers in the Prairies rely heavily on the Port of Vancouver to handle and export the majority of the grain they grow. In fact, last year terminal elevators at the Port of Vancouver received roughly 52% of all grain produced from across Canada, underscoring the critical role these terminals play in our agricultural supply chain. Following last month's rail work stoppages, this strike will have an equally devastating impact on grain farmers across the Prairies who are in the midst of harvest."

After a four-day strike by GWU, another strike began on Sept. 30, as Port of Montreal longshoremen members of CUPE 301 voted to strike after being without a contract since Jan. 1, 2024, and unable to come to terms in contract negotiations. After giving a 72-hour notice, the strike began on Sept. 30 at the Viau and Maisonneuve container terminals.

On Nov. 4, ILWU Local 514 started an industry-wide strike at BC Maritime Employers Association (BCMEA) member terminals.

On Nov. 12, MacKinnon ordered an end to work stoppages in British Columbia and Quebec ports, imposing final and binding arbitration on the parties. Operations began to resume Nov. 14, 2024, and continue until CIRB made a final determination.

Remember that East Coast port strike? Part of their temporary agreement still left their ability to strike on the table if they could not agree on final contract terms. As renewed contract talks began Nov. 12 between ILA and USMX, they quickly ended as automation once again became a sticking point with the union. If they can't come to terms, the strike will commence once again on Jan. 15, 2025.

Stay tuned to DTN for any updates on this major issue still hanging in limbo.

Here are some of the related DTN stories from this past year:

-- "Will They or Won't They? No Resolution for Possible Rail Strike in Canada," https://www.dtnpf.com/…

-- "CIRB Decision Prompts CPKC Railway to Issue Lockout Notices to TCRC," https://www.dtnpf.com/…

-- "Clock Is Ticking in Canada Toward a Rail Stoppage on the CPKC, CN," https://www.dtnpf.com/…

-- "CIRB Decision Reopens the CN and CPKC Railways; Sends Union Back to Work," https://www.dtnpf.com/…

-- "US East Coast and Gulf Coast Port Strike by ILA Union Appears Imminent," https://www.dtnpf.com/…

-- "The International Longshoremen's Association Is On Strike," https://www.dtnpf.com/…

-- "ILA Longshoremen Agree to Return to Work Until Jan. 15, 2025," https://www.dtnpf.com/…

-- "BC Maritime Employers Association Locks Out Striking ILWU 514 Workers," https://www.dtnpf.com/…

-- "ILA Ends Contract Talks With USMX Over Contentious Issue of Automation," https://www.dtnpf.com/…

Mary Kennedy can be reached at Mary.Kennedy@dtn.com

Follow her on social platform X @MaryCKenn

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