CN disputes Nutrien's claim that 'railway performance' is behind potash layoffs

The rail company says it's current with all deliveries for the potash producer, while the union representing Nutrien workers says the company improperly notified workers of the temporary layoffs.

Union for Nutrien workers also raising concerns

Guy Quenneville · CBC News · Posted: Apr 27, 2018 1:14 PM EDT | Last Updated: April 27, 2018

"It is important to note that CN is current with all deliveries at Nutrien and its orders," CN said Thursday. (Ryan Remiorz/Canadian Press)

The rail company that moves the majority of Nutrien's product from its Saskatchewan sites says all deliveries are up to date, despite the potash giant blaming rail performance for hundreds of temporary layoffs.

On Thursday, Nutrien confirmed 1,300 temporary layoffs at its Allan and Vanscoy mine sites. The company later downgraded the number to 610.

Nutrien issues hundreds of temporary layoff notices, blaming backlogged rail shipments

Nutrien blamed slow uptake of rail shipments from both sites for its decision. CN, which handles most of the rail deliveries for the two mines in question, is disputing that claim.

"It is important to note that CN is current with all deliveries at Nutrien and its orders," Kate Fenske, a spokesperson for CN, said via email on Thursday.

"Based on meetings with [Nutrien and Canpotex] this week, CN is either meeting or exceeding all contracted shipment requirements in 2018," Fenske added.

'Direct result of rail performance'

Will Tigley, a spokesperson for Nutrien, told CBC News Thursday that the layoffs at the company's Allan and Vanscoy mines were "the direct result of railway performance challenges that we're experiencing this year."

Asked how long the layoffs might last, Tigley said, "It's gonna be reliant on the railway systems. Once those are up and going, then we should be able to start moving back to regular operations."

Nutrien declined to respond to CN's comments Friday.

Nutrien's decision this week to temporarily lay off 610 of its mine site workers in Saskatchewan has the Canadian National Railway (CN) scratching its head. (Trevor Bothorel/CBC)

Fenske of CN said that while the railway company had a tough time in January meeting orders from Nutrien and Canpotex, it quickly rebounded in February and March to move all orders from both companies.

"CN is meeting (and going above) its contractual commitments with Canpotex and we have extra capacity available to export potash through the Port of [Saint John]. We have shared this information with our customer," Fenske said on Friday.

CN apologizes, promises immediate action to clear backlog of grain shipments

Premier Scott Moe echoed Nutrien's concerns about rail performance Thursday on Twitter.

"1,300 Saskatchewan people now temporarily out of work because sheds full of potash can't get on rail to market," he wrote.

1,300 Saskatchewan people now temporarily out of work, because sheds full of potash can't get on rail to market.<br><br>This is a direct result of the federal government not taking action where there is a huge problem, and they have clear authority to fix it.<a href="https://t.co/wFSZE5Yp9Q">https://t.co/wFSZE5Yp9Q</a>
—@PremierScottMoe

Workers allege improper layoff notification

Nutrien's decisions this week also came under questioning by United Steelworkers 7552, the union local that represents Nutrien workers.

"The union has met with the company to try and avoid this issue," the union local wrote to its members on Thursday.

"The union notified the company they are violating the [collective bargaining agreement]. However, the company knowingly chose to move forward anyway."

The union said it planned to file two labour grievances against Nutrien, including failure to follow the proper notification requirements.

CBC News has reached out to Local 7552's president, Darrin Kruger, for comment.