News / No end to chaos in sight for shippers as Canada's port rows escalate

© Butenkow

Shippers face severe disruption in Canada after the weekend failed to see labour tensions decline at the country’s ports: in fact, rows on both the east and west coasts escalated. 

On the west coast, where the ports of Vancouver and Prince Rupert are affected, the BCMEA’s decision to lock out ILWU Local 514 workers today, triggered a pushback from the union and no agreement was reached.

The port of Vancouver warned customers: “This BC coast-wide labour dispute will impact operations at BCMEA member terminals where Local 514 labour is employed. At this time, we expect grain and cruise operations, along with operations at the Westshore coal terminal to continue.   

“There is currently limited anchorage capacity at the port, due to elevated seasonal demand in the bulk sector as grain exports are in their peak period. 

“We are working closely with the industry to optimise anchorage utilisation to ensure port fluidity by prioritising anchorage assignments to terminals that remain operational. We are also working with federal partner agencies to proactively manage vessel traffic impacted by the labour disruption, the port’s anchorage availability and expected inclement weather.” 

There are nine box ships incoming, according to eeSea. None is due until Thursday, but MSC Lanya departed Vancouver this morning, before the lockout began.  

Cosco Aukland is docked at Prince Rupert’s Fairview terminal and due to leave on Thursday, while Maersk’s San Felipe, a TP1 service on the 2M transpacific loop, is due to leave on Wednesday. 

There is no obvious end in sight.  

“The BCMEA is demanding wild concessions, skipped the last mediation session, is not willing to return to the negotiating table and is planning on shutting down the entire waterfront, because of an overtime ban by the union. This makes no sense — except, if the BCMEA wants to create an unnecessary crisis to pressure the federal government into intervening,” said Frank Morena, president Local 514, yesterday. 

Meanwhile the BCMEA made public its ‘final offer’, in which it claimed that, “after prolonged bargaining, threatened strikes and illegal conduct by the union, and with talks now going backwards, not forwards, the BCMEA believes it is now time to reach an agreement in an expedited manner”.  

It added: “Aspects [of the offer] could change if negotiations dragged on and the economic or inflationary landscape continued to shift.” 

The offer includes: a 19.2% wage increase and “retroactivity on wages; maintenance of the 4/3rd’s wage relationship between the forepersons and longshore workers; improvement in welfare and other benefits; a signing bonus to all Local 514 members. 

However, it added that if the offer is not ratified by the union, then any subsequent offer would not include a signing bonus and the 4/3rds formula would be removed and replaced with “current inflation in years three and four of the agreement, at 2% and 2%, respectively”. 

If ratified, “the BCMEA will agree to accelerate and pay retroactivity and the signing bonus in full to each member by mid-December”. 

The offer does not seem to have appeased the union, which Mr Morena said was “extremely angry”. 

“Not only has the BCMEA continuously refused to bargain on the major issues, including manning, but is now threatening to close the entire waterfront with a full-scale lockout in its attempt to force the federal government to intervene in the dispute,” he claimed. 

Meanwhile, over on the east coast, the two Termont terminals at the port of Montreal, accounting for 40% of container traffic at the port, have been blocked since Thursday, when CUPE Local 375 called an unlimited strike.  

The Maritime Employers Association (MEA) has fought back: on Saturday, it said it had “no other choice than to proceed with the suspension of the salary guarantee as of 5 November at 7am, for all longshore workers not working”. 

“This is a mitigation measure to reduce the cumulative financial impact of repeated strikes and lower volumes at the port of Montréal.” 

The Local 375 banned working overtime on 10 October, which the MEA said had had “a major impact on most operations at the port of Montréal. Union actions caused a move in cargo to other destinations”. 

It explained: “After thoroughly analysing the financial situation, the MEA, informed the union this morning that it will suspend the salary guarantee mainly for longshore workers assigned to container transhipment who are not at work. 

“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, unique to Montréal longshore workers, is expected to cost approximately $15m.” 

It added that the union had rejected its proposal to bring in a special mediator. 

Workers and terminals in the bulk sector and essential services are excempted from all actions. Likely affected vessels include the MSC Jordan III, which is due to arrive at Viau terminal on Tuesday, and the MSC Lisa and MSC Don Giovanni, due to arrive at Masionneuve terminal on Saturday and Sunday, respectively. The OOCL St Laurence left Montreal today after arriving on Saturday, but switched terminals from Viau to Cast.