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Trucker convoy protests CNRL rates

A convoy of truckers, close to 100 strong according to some reports, headed east to Lloydminster Wednesday morning to deliver a message of solidarity to Canadian Natural Resources Limited (CNRL) calling for increased compensation for fluid hauling in
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Truckers line up in Elk Point on July 25. The convoy travelled to Lloydminster as a form of protest.

A convoy of truckers, close to 100 strong according to some reports, headed east to Lloydminster Wednesday morning  to deliver a message of solidarity to Canadian Natural Resources Limited (CNRL) calling for increased compensation for fluid hauling in the oilfield. The reception was not a warm one, with the company access blocked off to the truckers.

Leading the pack was Andrew Bykowsky who went public with his concerns on Facebook, calling out CNRL for poor wages and being ultimately responsible for financially ruining the livelihoods of local lease operators.

"The message we're basically delivering is that we want to show that we need an increase, that they are ruining people's lives; this is not a joke," Bykowsky told the Journal last Tuesday afternoon. "If we absolutely have to shut down our equipment, they are going to be losing money. This is not a matter of wanting an increase anymore; this is a matter of our livelihoods, this is a matter of being financially ruined."

Bykowsky says he felt he had no alternative but to speak out. He claims owner/operators are being crushed by the cost of living including high fuel prices, insurance, truck payments and repair costs and it's because CNRL has not upped their pay even though there's been some recovery in oil prices. He said a 30 per cent rate cut to the truckers back in 2014 has never been reversed and there is no profit margin left.

"Oh God, there is none. There is absolutely no margin these days. Especially over this last year, it's gotten to the point that absolutely everyone I know that hauls fluid is completely broke, their credit is maxed out. Most of the guys I know have had to refinance their truck, remortgage their houses. There's actually guys that have had to consolidate, or go bankrupt. This is becoming more and more of a problem as time goes on. Guys' equipment is wearing out. Guys are having breakdowns and they simply can't afford to pay to repair them."

He said attempts to get CNRL to increase rates have fallen on deaf ears.

"It is absolutely unbelievable. Everybody out here is in the same boat. Every owner/operator out here is broke and this is affecting families and small businesses. I think everybody's been waiting for someone to finally start something. The response I've gotten is crazy."

Bykowsky believes it was his public outcry on Facebook that got him fired Monday morning by CNRL. While he was told by the CNRL superintendent that fired him over the phone, that he was breaching safety regulations by, among other things, videoing himself while driving, Bykowsky believes that's the loophole they needed to get rid of him for going public with his concerns.

"In all honesty, I kind of figured that was going to happen because I’m the guy that’s organizing this shutdown. It’s never been just about me. I’m a young guy and I know I can find more work out there. I’m seeing this through because I have a lot of friends and I know a lot of people that do this for a living and it’s absolutely disgusting to see everybody suffering as bad as they are.

"I'm going to do everything I can to make sure these guys (truckers) get what they deserve. It’s not like we’re asking to be rich out here. We’re asking for fair pay so we can afford to pay our bills, and you’re not stressing about a breakdown. Right now, guys are at the point where they can’t afford to have a breakdown because that will put them under."

CNRL responds

No CNRL representatives met with the truckers in Lloydminster Wednesday. However, CNRL issued a prepared media statement via email to the St. Paul Journal Wednesday afternoon.

"We have ongoing meetings with our truck servicing firms and we encourage independent contractors to work with their employers to bring forward their concerns to us. We are committed to working together with our truck servicing firms to work through these concerns. That said, we would like to emphasize that market access is the key issue that is impacting everyone in Canada’s oil and natural gas sector," the statement read.

"The constraints on pipeline transportation systems is an ongoing economic challenge, particularly for heavy oil producing areas due to the price differentials between West Texas Intermediate (WTI) and Western Canada Select (WCS) prices. Without pipeline transportation to broader markets, heavy oil production has limited ways out of Alberta. As a result, Canadian Natural and the industry has shut-in production,  suspended drilling programs and activities in local operating areas. In Q1, Canadian Natural curtailed production of approximately 7,100 bbl/d in the first quarter along with deferring completions and workover activities, and 31 net wells not completed.

"Ultimately, this means significantly fewer jobs for Canadians, particularly in heavy oil producing areas. It remains critically important that we continue working together to ensure pipeline projects get built so that we receive full value for Canadian heavy oil. Market access is clearly affecting jobs and local businesses, as we are seeing with the response from truckers today. With enhanced market access, Canadian Natural and the industry could increase activity, create additional jobs and more work for everyone, including truckers.

"Given the ongoing challenges that the industry faces, Canadian Natural remains focused on safe, effective and efficient operations, while improving productivity and controlling costs to deliver on our plans, maintain jobs and government revenues.

"Canadian Natural recognizes and appreciates that our service providers have shared these significant challenges along with us. Our service providers are integral to our continued success.

"The safe, reliable transport of our product is important to our operations. At our heavy oil operations, we have ongoing meetings with our truck servicing firms and encourage independent contractors to work with their employers to address their concerns.

"We will continue working together with our service providers on our shared challenges to achieve our mutual goal of a strong future for Canada’s oil and natural gas industry."

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