Strikes Shut Down B.C. and Montreal Ports (Updated)

Trade Update • Nov. 12, 2024

ue to the lack of progression in negotiations and the inflexibility seen on all sides of the labour disputes at Ports in BC and Quebec, Canada’s Minister of Labour Steve McKinnon under section 107 of the Canada Labour Code, has directed all operations and duties, at all ports, to resume. Final and binding arbitration has been imposed and the terms of the existing collective agreements have been extended until new ones are established.

Full update here.

Strike Action

The Maritime Employers Association (MEA) has locked members of the Port of Montreal dockworkers’ union (Syndicat des débardeurs du port de Montréal) after union members rejected the employers’ latest offer on Sunday (November 10). Approximately 1,200 longshore workers are directly impacted, along with thousands of workers that are part of the supply chain, such as trucking and railway employees.
Longshoremen’s Union CUPE Local 375 rejected the deal, maintaining its strike at the Termont terminals, in search of higher pay, while some workers at other facilities are also refusing to work overtime to help clear cargo build-up.

A statement from Maersk provided updates on services headed toward the Canadian gateway, noting that CMA CGM was considering options for a vessel, due to arrive later today or tomorrow to discharge at Halifax, with Maersk considering a similar decision for one if its vessels. Its Barcelona Express service would omit Montreal and go on to St John for import discharge.

Meanwhile, rail operator CPKC confirms it will not accept pre-billed or non-billed empties destined for Montreal “until further notice”, with Canadian National having also suspended and removed capacity at inland terminals destined for the port.

Operations at Montreal have been halted since 31 October over a dispute at the two container terminals operated by Termont, responsible for some 40% of port volumes. As Canada’s second-largest port, the Port of Montreal typically handles nearly C$400 million of goods a day.

According to the eeSea database, there are currently four vessels waiting at anchorage and one at berth. The port authority said: “These activities require only 45 longshore workers to complete the tasks on the docks, since volumes have dropped significantly.

“The longshore workers’ multiple strikes… affect not only operations, but also, more importantly, public safety and the entire Quebec and Canadian economy, by depriving thousands of businesses and consumers of essential goods,” it added.

Strike action details sourced from LoadStar.

Suspension of Rail Operations

Since Tuesday, November 5th, at 7:00 AM, Montreal Gateway Terminal (MGT) rail operations at both Cast and Racine facilities have been suspended until further notice. This action is due to operational constraints and uncertainty arising from the ongoing renewal of the Montreal Longshoremen collective agreement.

As a result, CN suspended and removed all capacity at their inland terminals for exports destined for Cast and Racine until further notice.

Strike Continues on for Ports in British Columbia

The B.C. Maritime Employers Association (BCMEA) announced a lockout for foremen at British Columbia ports, which took effect on Monday, Oct. 4 at 4:30 p.m. PT, in response to escalating actions by the International Longshore and Warehouse Union (ILWU) Local 514.

The lockout excludes grain and cruise operations, but it raises concerns about potential disruptions to Canada’s West Coast trade.

Automation and Job Security

The union issued a strike notice last week, initiating limited job actions like an overtime ban. Their primary demand is to protect jobs from automation, with the union accusing BCMEA of “acting recklessly” to pressure federal intervention.

Calls for Federal Mediation as $800M in Trade at Stake

With $800 million in daily trade flowing through these ports, business leaders urge Ottawa to consider ports as essential services to prevent disruptions.

“The shutdown of B.C. ports will negatively impact many small businesses across Canada,” said Jasmin Guenette, CFIB’s vice-president of national affairs. He pointed out that a 13-day port strike in 2023 froze billions of dollars in trade at the docks.

In a statement on social media platform X on Sunday, Labour Minister Steven MacKinnon said federal mediators are on standby, ready to help the employers and union. “It is the responsibility of the parties to reach an agreement. Businesses, workers and farmers are counting on them to get a deal,” he said. During question period Monday, MacKinnon was asked by NDP MP Matthew Green whether the minister will “categorically reject” any intervention that would “force port workers to give up their collective bargaining rights.” MacKinnon doubled down again saying it’s up to the parties to reach a deal.

Quotes sourced from CBC’s article here.

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