🚨😡 "Thousands Lost!" Local Ag Business Crippled by Rail Strike 🚂💸 How long can they survive? 👉 #Olds #Alberta #AgCrisis #SupplyChainDisaster
Rail Stoppage Hits Local Ag Business Hard: Thousands Lost in Delays
A recent railway work stoppage has hit an agricultural business near Olds, Alberta, costing it thousands of dollars and causing major disruptions. Barr-Ag Ltd., a major player in the local ag industry that ships millions of dollars worth of grain and hay overseas every year, found its operations brought to a standstill during the railway strike.
Railways Back in Action After Days of Disruption
Canada’s two major railways, Canadian National Railway Co. (CN) and Canadian Pacific Kansas City Ltd. (CPKC), resumed operations on Monday after a four-day work stoppage. The Canada Industrial Relations Board (CIRB) ordered the rail companies and their 9,300 workers back to work ahead of binding arbitration set to begin this week.
The stoppage was triggered by a bitter labour dispute between the rail companies and the union representing their workers, Teamsters Canada Rail Conference. In a historic turn, CPKC locked out workers last Thursday, coinciding with a strike initiated by the workers. CN, meanwhile, received a 72-hour strike notice from the Teamsters, creating further uncertainty.
Costly Impacts on Local Businesses
For Barr-Ag Ltd., which operates with around 60 employees across Olds and Calgary, the work stoppage has been a significant blow. “We’re shut down. No production, which is frustrating,” said Barry Schmitt, president of Barr-Ag. The company has been unable to fulfill delivery contracts, leading to awkward conversations with clients abroad. Schmitt said that the company had to call customers late at night, apologizing for Canada's ongoing supply chain disruptions.
“They’re asking, ‘Why so many strikes in Canada?’” Schmitt noted, expressing concern over how much longer customers would tolerate these interruptions.
Fears of Losing Long-Term Customers
The impact of the work stoppage could be lasting, with Schmitt worried that vessels waiting to pick up Canadian products might soon bypass Vancouver altogether in favor of ports like Seattle. “We can handle a few days, but the momentum is gone now,” he said, pointing out that long-standing customers might start sourcing their products elsewhere if the situation doesn't improve quickly.
Holding On—For Now
Despite the mounting challenges, Barr-Ag has managed to avoid layoffs, keeping employees busy with cleanup and maintenance tasks. Crops are still being harvested and bagged to protect them from pests and weather, though the added storage costs are less than ideal. “Bagging is an extra cost, but at least it’s an option,” Schmitt remarked.
Schmitt remains hopeful that the crisis will be resolved before long-term damage is done to Canada’s reputation as a reliable supplier, but the situation serves as a stark reminder of how fragile supply chains can be.