A bitter labour dispute between the federal government and striking foreign service workers has Canadian food producers worried that their summer harvest will be ruined, as visas for the seasonal workers they rely on are delayed by the job action.

Some 1,300 diplomats have been on strike since April, demanding higher pay and better benefits. However, the Harper government is refusing to meet their demands as it focuses on reining in public-sector spending.

“We’d like to see the labour issues resolved,” Government House Leader Peter Van Loan said Friday. “But we continue to offer services and hope to meet their needs.”

While it appeared at first that the dispute would only impact Canada’s tourism industry, it is now threatening other sectors. The diplomats have ramped up their job action by delaying visas for seasonal workers as well as other long-term visitors, such as students.

North Nova Seafoods in Pictou, N.S. is running at half its capacity because the company has been unable to obtain the annual visas it requires to bring in seasonal workers from Thailand.

“It could cost us in excess of $100,000 over two months, just not having these workers here,” said Michael Duffy, the company’s general manager.

Covert Farms in Oliver, B.C. may not have the Mexican workers the company relies on for the harvest season as work visas have yet to be processed.

“If anything it’s going to create potential waste of product, if not higher prices in the marketplace,” said Derek Uhlemann, the company’s hospitality and sales manager.

The Professional Association of Foreign Service Officers says it is still processing visas and other immigration documents.

“Our plan is to maintain a full-court press on visa and immigration processing throughout the summer at some of the largest centres abroad, including Delhi, Beijing, Mexico City, Sao Paulo and Manila,” the agency’s Timothy Edwards said.

But in addition to food producers, college and university administrators are concerned that student visas may not be ready in time for the fall semester. They warn that losing these students would equal an $8 billion hit to the Canadian economy.

“If we don’t get the students on campus this September,” said Paul Davidson of the Association of Universities and Colleges of Canada, “we’ll lose them for the next four years. They’ll make other choices.”

Meanwhile, it is unclear when the dispute will be resolved, as no further talks have been scheduled between the government and striking diplomats.

With a report from CTV’s Richard Madan