Thank you, Chair and members of the committee, for the opportunity to appear today.
My name is Scott Ross. I'm the executive director of the Canadian Federation of Agriculture, which is Canada's largest general farm organization, representing approximately 190,000 farmers and farm families across the country. I'm joined here today by Brodie Berrigan, our senior director of government relations and farm policy.
Canadian producers depend on reliable rail and marine transportation to receive essential inputs and move their products to domestic and international markets. Disruptions affect far more than the parties directly involved in a labour dispute. Farmers face delayed payments, higher costs and lost market opportunities. Repeated disruptions also undermine Canada's reputation as a reliable supplier, particularly as we work to diversify our export markets. That is why CFA welcomes the government's efforts through Bill C-39 to strengthen collective bargaining in Canada's transportation system.
We believe the special mediator is one of the most promising provisions in the bill. A dedicated mediation process supported by clear timelines and public reporting when parties are unable to reach an agreement can improve transparency and accountability, while encouraging timely negotiated outcomes.
However, we believe there is an important opportunity to make this provision more effective. The bill creates the special mediator process we have advocated for, but leaves appointment entirely to the minister's discretion. Neither party can require an appointment, and if no special mediator is appointed, there is no report. Without that report, the minister may be unable to exercise certain powers to direct binding dispute resolution. CFA recommends making that appointment automatic for disputes that remain unresolved by day 75 of conciliation.
Our goal has been the same from the beginning, which is to resolve disputes before they become disruptions. The economic consequences of labour disruptions for Canadian agriculture can be substantial. The supply chain task force noted that “rotating strikes at the Port of Montreal in 2020 led to 21 container ships diverting elsewhere, which cost businesses an estimated $600 million in lost sales.”
A February 2026 study by Anderson Economic Group estimated that a combined rail and port work stoppage lasting just one week during peak export season could cost Canada's grain industry nearly $540 million in lost earnings. Importantly, that same study estimates that up to $112 million in grain sales could be lost before a work stoppage even begins, as transportation networks slow in anticipation of a potential disruption. These impacts can continue after service resumes, as backlogs take time to clear and international customers may turn to alternative suppliers.
These findings underscore the importance of addressing disputes as early as possible and taking proactive steps to prevent disruptions, particularly given that significant economic harm can occur well before a work stoppage begins.
Beyond the labour provisions, Bill C-39 also includes an important measure related to rail competition, which is the proposed restoration of extended interswitching in the prairie provinces. CFA welcomes this measure. However, we would encourage the committee to make extended interswitching permanent rather than introducing another temporary pilot. We also believe the measure should be brought into force as soon as possible. The government's stated intention to delay implementation until there is a reliable trading relationship with the United States creates unnecessary uncertainty for agricultural shippers, who need greater competition and more reliable transportation options today.
Bill C-39 represents meaningful progress. We encourage the committee to build on that progress by strengthening the special mediator process and advancing greater competition and resilience across Canada's transportation system.
Thank you and I look forward to your questions.