In industrial actions that could potentially affect billions of dollars in Canadian trade and spark cargo diversions, all 730 foremen at British Columbia ports were locked out today by maritime employers for failing to withdraw a strike notice while in the eastern region of the country an “unlimited strike” by longshoremen launched last Thursday against a major container operator was continuing. It was believed to be an unprecedented simultaneous work stoppage impacting ports on both the west and east coasts of Canada.
After ILWU’s partial strike early today had already begun to impact on BC’s waterfront operations and deeming such activity could “easily escalate,” the BC Maritime Employers Association (BCMEA) announced a lockout until further notice commencing on the 16.30 shift “to facilitate a safe and orderly wind-down of operations. This lockout will not apply to grain or cruise operations.”
The union had previously attempted to strike at DP World’s facilities but was blocked last July by the Canada Industrial Relations Board which ruled “illegal” the singling out of a single operator in a collective contract dispute.
The work stoppage will affect some 30 port terminals, including those at Vancouver, Canada’s largest port, and Prince Rupert. A 13-day coast-wide industrial action in July 2023 froze an estimated $10 billion in foreign trade.
ILWU local 514 president Frank Morena said the union had only planned “limited job action” such as refusing overtime and accepting some technological changes.
He affirmed that the employers “completely overreacted" by threatening a "full-scale lockout” and this represented an "attempt to force the federal government to intervene in the dispute."
“Despite ILWU Local 514's regrettable decision to destabilize Canada's supply chain,” the BCMEA said its final comprehensive offer remains open until withdrawn. The existing contract expired on March 31, 2023.
The final offer, which was rejected by the ILWU, includes a 19.2% wage increase, which would enhance the median foreperson compensation from C$246,323 to C$293,617 annually, not including benefits and pension. On average, eligible workers would receive a cumulative lump sum payment of approximately C$21,000, inclusive of signing bonus and retroactive pay increases back to April 2023. Subject to the date of acceptance, the BCMEA agreed to accelerate and pay retroactivity and the signing bonus in full to each member by mid-December.
Among various industry groups that have sounded the alarm, Fertilizer Canada pointed out it will be one of the hardest hit commodities. Fertilizer Canada said a shutdown will cost the industry C$9.7 million per day in lost revenue and could damage Canada’s reputation as a reliable trading partner, and “provide an advantage to our competitors and potentially ceding market share to Russia and Belarus.”
Salary guarantee withdrawn from Montreal longshoremen
In Montreal, an overtime ban by longshoremen has been in effect since October 10 and the union representing 1,200 longshoremen last Thursday launched an unlimited strike on the two Termont container terminals that account for 40% of total box traffic.
In response, the Maritime Employers Association (MEA) has suspended the salary guarantee as of November 5 at 7:00 a.m. for all longshore workers not working, with the exception of bulk sector and essential services. “This is a mitigation measure to reduce the cumulative financial impact of repeated strikes and lower volumes at the Port of Montréal.”
Last week, the MEA proposed entering into a period of accelerated negotiations with the Union, without preconditions, with the support of a special mediator appointed by the federal Minister of Labour, in order to reach a new collective agreement. “Unfortunately, the Union rejected this proposal,” the MEA said.
“Instead, the Port of Montréal Longshoremen's Union, CUPE Local 375, decided to call an unlimited strike on October 31 that directly blocks two Termont terminals and the handling of 40% of containers delivered to the port. This regrettable decision, which is in addition to the refusal to work overtime since October 10, has a major impact on most operations at the Port of Montréal. Union actions caused a move in cargo to other destinations.”
Currently, Port of Montréal longshore workers who are on call but who are not working due to insufficient volume receive their full salary each week. This specific provision, said the MEA, is “unique to Montréal longshore workers and is expected to cost approximately $15 million in 2024.”
