Workers at Vancouver grain terminals go on strike, exports could take hit

OTTAWA (Reuters) -Workers at the six main grain terminals located in the Canadian port of Vancouver went on strike on Tuesday, a move that could disrupt exports of canola and other crops, government and industry officials said.

Talks between the Grain Workers Union and the Vancouver Terminal Elevators' Association broke down last week amid a deadlock over benefits, potentially impacting exports from the world's top canola and No. 3 wheat exporter during the harvesting period.

The negotiations, however, resumed on Tuesday alongside federal mediators, a development which a trader said boosted ICE canola futures.

"At my request, parties have agreed to resume negotiations alongside federal mediators," Labour Minister Steven MacKinnon said in a post on social media. "After a bumper crop summer, Canadian farmers and businesses need to get their harvest to market. Parties need to work hard to get a deal."

The Canola Council of Canada said in a statement that the strike would cause significant financial harm and called on Ottawa to work quickly to end the dispute.

MacKinnon said the best way to solve labor disputes was at the negotiating table.

Jerry Gidel, analyst with Midland Research said while much of Canada's agricultural exports move through Vancouver to Asia, the strike likely would not have a big market impact unless it continued for three to four weeks.

Jack Scoville, an analyst with the Price Futures Group in Chicago, said the strike could result in some additional canola and wheat going through U.S. ports.

"For the Canadians, it should interrupt their canola and wheat shipments off the West Coast. And that could force canola and wheat down here (into the U.S.). So that could be a little negative to prices," he said.

(Reporting by Ismail Shakil and David Ljunggren; Additional reporting by Julie Ingwersen and Tom Polansek in Chicago; Editing by Mark Porter and Emelia Sithole-Matarise)