News / Canada's west coast ports hit by strike as labour contract talks fail

fairview-container-terminal Credit Prince Rupert Port Authority

Port workers in the International Longshore and Warehouse Union (ILWU) walked out on Saturday morning, beginning a strike that will hit ports on Canada’s west coast, including Vancouver and Prince Rupert, the nation’s first and third-biggest container gateways.

The stoppage involves some 7,400 workers of 49 waterfront employers, including DP World, but won’t affect grain shipments going through the ports.

The ILWU blames the British Columbia Maritime Employers Association (BCMEA) for the escalation, arguing that the employers “refused to negotiate on the main issues”, which left the union “no choice but to take the next step in the process”.

The “main issues” are higher wages, protection for workers against automation and restricting the use of non-union labour at port-related operations.

The BCMEA claimed it had made “several constructive offers in good faith” and was open to binding arbitration to settle the contract dispute.

Business groups have called for government intervention, warning that the strike would have dire repercussions for the Canadian economy, as almost C$225bn (US$169.8bn) worth of goods are handled at BC ports in a year. They made no reference to high inventory levels and weakened demand and said the stoppage could impact Canadians very soon.

Yesterday, ILWU Canada president Rob Ashton said the Canadian government should not interfere, arguing that there would “never be peace on the waterfront” if a labour contract was imposed by Ottawa.

“This deal must be reached at the collective bargaining table,” he stressed, noting that contract negotiations had continued through the weekend.

Federal labour minister Seamus O’Regan is in Vancouver and says he intends to remain until agreement is reached. His spokesman said the government was “not looking past the bargaining table, as the best deals are struck there”.

Government mediators have been involved since the union called for mediation after only five negotiating sessions over the labour contract, which began in March, citing lack of progress.

According to various sources, flows through the port of Vancouver were moving without congestion or delays as the stoppage got under way. Maersk notified its customers that one of its vessels had discharged its load at the port on 29 June, but warned that loading containers on rail could see disruptions.

According to Maersk, CN Rail declared embargoes effective 1 July for traffic to ports affected by the labour stoppage. CPKC kept its gates open for dry exports and empties but stopped loading and departures of exports headed to Vancouver. In addition, the rail carrier would stop accepting reefer containers from today.

Vancouver Fraser Port Authority has announced several “proactive measures” to manage vessel arrivals and anchorage assignments, which include a 48-hour maximum for vessels staying in the inner harbour.

In light of the lack of progress in the negotiations to date and relatively moderate traffic volumes, it seems unlikely that a breakthrough in the negotiations is imminent