With a number of grain ships backing up on their loading schedule and problems of poor deliveries prior to the strike, the Prince Rupert Grain Elevator is looking at a recovery period of at least three to four weeks to get back on track, should the train problems get sorted out soon.
All of which does cause problems with reputations in world markets, so it would seem that the current case of congestion, is causing a bit of indigestion for the Wheat Board, the grain elevators and Canada’s reputation as a dependable provider of grains.
The Daily News provided some local interest to the current labour dispute at CN, with a front page story about the local reaction to the troubles being caused by the strike.
SHIPS PILE UP IN HARBOUR AS CN STRIKE CONTINUES
By Leanne Ritchie
The Daily News
Wednesday, February 21, 2007
Ships are turning the Prince Rupert harbour into a parking lot as the labour disagreement between CN and the United Transportation Union continues to exacerbate shipping delays.
The impact of the strike is being felt across the country, to the point where the federal Labour Minister yesterday proposed stepping in with a law ordering the 2,800 CN Rail employees back to their jobs.
“I contacted both parties to inform them that the situation couldn’t continue, that Canada’s economy is being severely affected ... that they only had a few hours left before parliament would act,” Labour Minister Jean-Pierre Blackburn told the House of Commons.
“Our legislation is ready.”
A government source said yesterday that the legislation could be up for a vote on Thursday.
Blackburn’s announcement, made on the brink of what company officials had hoped would be pivotal contract negotiations, came 11 days into the labour dispute.
Striking CN Rail workers rejected a company request to return to work voluntarily Tuesday and the B.C. Federation of Labour was set to rally in Vancouver today in support of the union’s cause.
In Prince Rupert, there are now seven grain tankers and one coal ship waiting to be loaded, with another five expected by the end of the week.
Jeff Burghardt, president of Prince Rupert Grain, said they are currently facing a three- to four-week backlog, caused by poor rail performance for the last 10 to 12 weeks and then exacerbated by the labour disruption
“For us, this is a very acute situation because we were hopeful we would be recovering over these last two weeks and cleaning up the clog of ships, but the strike is not a good opportunity for us to make that headway,” said Burghardt.
“I think that the railway is making a very good effort through the strike to continue to operate the railway, it’s just unfortunate when it comes at a time when we are already behind because of poor performance.”
It will take Prince Rupert Grain two to three weeks of improved rail service — with 1,400 rail cars per week coming through compared to the current 1,000 — to recover. Last week, the Canadian Wheat Board complained that member suppliers are paying about C$150,000 a day in demurrage (penalty) fees for the delays.
Burghardt said these fees, which will come home to overseas customers, will impact the country’s reputation.
“When these types of bills are having to be paid, overseas customers don’t necessarily take the time to understand who is responsible for their added costs. All they know is the Canadian system is letting them down right now and their patience for that sort of thing is running thin,” he said.
Burghardt said in the long run, it will be important for the union and company to work this out.
“It is important for all of us that the people who are working the system come to their own agreements and create more stability in their workforce through those types of methods rather than direct government intervention,” he said.
With files from CP
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment