North American labor disruptions have expanded, as dockworkers at the major Canadian ports of Montreal, Prince Rupert, and Vancouver have launched concurrent strike actions. The disruptions come on the heels of the recent labor strike at ports on the U.S. east and gulf coasts, and for the same reason of collective bargaining disagreements. On Canada’s east coast, workers at the Port of Montreal have been without a collective bargaining agreement for over one year. On Canada’s west coast, workers began threatening strike action on May 16 to demand an increase in wages and restrictions on the future use of automation in ports. The coast-to-coast port strikes in Canada will likely lead to impacts on the flow of cargo in North America and could have wide-reaching effects on sectors relying on these ports.
Workers at the Port of Montreal launched an indefinite strike on October 31 to force the Maritime Employers Association (MEA) back to the bargaining table. Previously, workers voted in favor of strike actions on September 25 before launching a three-day strike on September 30 and a 24-hour strike on October 27. The workers also imposed a ban on overtime hours from October 10. Over 1,200 workers represented by the Canadian Union of Public Employees (CUPE) have participated in the strike. Impacts have been most severe at two container terminals owned by the Termont company, Viau and Maisonneuve, which account for 41 percent of containerized cargo processing at the Port of Montreal.
The Canadian government has not taken any direct intervention in the Montreal strike but has proposed federally mediated talks and a 90-day cooling-off period. These proposals were rejected by the union and the strikes immediately led to delays and congestion at the port. Following the three-day strike from September 30 to October 3, nearly 14,000 containers were reportedly affected and suffered delays in processing. The most affected sectors were the food, pharmaceutical, and medical devices industries.
On the west coast of Canada, port workers in the province of British Columbia launched a concurrent strike action on November 4. The workers, represented by the International Longshore and Warehouse Union (ILWU), have been unable to make any progress in negotiations with the British Columbia Maritime Employers Association (BCMEA). The strike is impacting both the Port of Vancouver and the Port of Prince Rupert. In response to the strike, the BCMEA began locking out employees on November 4. Retail and trade organizations have called for government intervention, but it remains unlikely as the Federal Labor Court of Canada declined to rule the strike illegal.
Disruptions have already impacted container processing and flows of commodities such as fertilizers. The port of Vancouver is a key entry point for goods bound for markets in both western Canada and the U.S. Perishable food items such as dairy, produce, and seafood products as well as manufactured goods like automotive components are most likely to be impacted in the event of a prolonged strike. The ports of Vancouver and Prince Rupert are also critical points for chemical transport including caustic soda, ethylene glycol, and sodium chlorate. Over USD 800 million (EUR 746 million) in cargo is expected to be affected during each day of the strike at the two west coast ports.
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