Canada Markets
Viterra Faces Possible GSU Labor Action Early in 2024
After a tumultuous 2023 across Canadian labor markets, labor unrest has struck early in 2024 for the prairie agriculture industry and could lead to a strike or lockout in the upcoming days within the Viterra system in Saskatchewan.
On Dec. 15, the Grain and Services Union (GSU) Local 1, representing Vitera Country Operations and Maintenance staff across Saskatchewan, and Local 2, representing Regina, Saskatchewan Head Office staff, reported that Viterra's final offer was rejected. A total of 436 employees are affected in Saskatchewan, while this move followed more than one year of negotiations.
The GSU lists the issues being "reliable wage increases, better work-family balance, health and safety and greater respect in the workplace." The Regina Leader-Post has reported that the ability to work from home is in demand from union workers, as well as additional compensation for activities such as loading a train in 24 hours, which results in a premium paid to the company.
On Jan. 2, the GSU provided Viterra with a 72-hour strike notice, with the potential to strike as soon as Jan. 5 at 2 p.m. CST. Prior to this time, the two sides are to meet with a federally appointed mediator. A Viterra website update indicates that the company may consider a lock-out prior to this time, depending on the outcome of the current negotiations. "In the event of a strike or lockout, Viterra has contingency plans in place to minimize disruptions to its customers. Any changes to location hours, or operations will be communicated."
According to Canadian Grain Commission data as of Nov. 1, 2023, Viterra accounts for 31 of the 172 licensed primary elevators in Saskatchewan, or 18% of the province's total, while totaling 1.13608 million metric tons (mmt) of storage space, or 26.8% of the provincial total.
OTHER JOB ACTIONS IN 2023
In March of 2023, CN Rail and the UNIFOR union reached an agreement at the 11th hour to avoid a strike. During July of 2023, more than 7,400 British Columbia port workers reached a deal with employers to end a strike which lasted close to two weeks. This strike did not affect grain terminal operations but did affect container movement of grain. In October, roughly 350 UNIFOR members employed by the St. Lawrence Seaway Management Corporation went on strike from Oct. 22 to Oct. 30.
In December, the Canadian Broadcasting Corporation (CBC) ran a piece on 2023 job actions across the country, noting that many commentators have called it "the year of the strike." Workers are taking advantage of a tight labor market and reacting to the high levels of inflation faced in order to better their situation. At the same time the CBC notes, "Generally speaking, labor disruptions have become less common -- thanks in part to declining union membership."
CBC analysis, citing Statistics Canada data, showed 2.2 million person-days not worked due to work stoppages in 2023. While the chart presented shows this to be an 18-year high, it is well below the 4.1 million reported for 2005 and the more than 70-year high of 11.5 million reported for 1976.
The research also indicates that strikes are getting longer in duration. In 2023, this average was 75.4 days, the highest in six years. This is the fourth-highest reported over the more than 70 years, with an average of 112.5 days reported in 2017. The four years reported with the longest duration have all taken place in the past 11 years.
VITERRA/BUNGE MERGER SET FOR THIS YEAR
Viterra was formed in 2007 with the merger of the Saskatchewan Wheat Pool and Agricore United, which wrapped the three prairie pools and the United Grain Growers into one organization.
On a global scale, Viterra is reported to have 16,000 employees across 37 countries and trades over 70 mmt of agriculture commodities. The company is also in the news with a potential merger with Bunge, a reported $8.2 billion USD deal said to create a $34 billion company. This deal will potentially close by the middle of 2024, according to the two companies, although may continue to face scrutiny by government and farm groups.
Cliff Jamieson can be reached at cliff.jamieson@dtn.com.
Follow him on X, formerly known as Twitter, @CliffJamieson.
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