Some 3,000 workers at Canadian Pacific Railway (CP) have voted to strike beginning on March 16, according to their union.
The potential labor disruption at one of Canada’s largest railways threatens to upend global supplies of fertilizer just as farmers need nutrients to plant spring crops.
Canada, along with Russia and Belarus, is one of the main sources for the world’s potash, a commonly used fertilizer that contains potassium. A potential work stoppage comes amid concerns of shortfalls in supplies amid Russia’s invasion of Ukraine and economic sanctions on both Russia and its ally Belarus.
Management at CP Rail has offered wage increases for a two-year collective agreement and agreed to 20 union demands. However, the union is not satisfied with the proposals and concessions from management and has now voted in favor of a work stoppage.
Shipping disruptions across Canada could also drive up the prices of lumber and other commodities, which are already at all-time highs and putting strains on businesses and consumers, say analysts.
Lumber futures in Chicago trading yesterday (March 2) rose to $1,268.70 U.S. for 1,000 board feet of wood, a two-week high.
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