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Experts are predicting that Canada is facing a supply chain crisis with a widespread impact on the economy as the terminal operators began locking out dockworkers in Montreal following a similar move a week ago at the British Columbia ports on the West Coast. Dockworkers in Montreal and foremen in the West are demanding improvements in working conditions and without contracts for months the pressures are building between unions and the associations representing terminal operators.
The union representing the Montreal dockworkers reported that its members nearly universally rejected the last offer for an approximately 20 percent wage increase of six years. They accused the employers of creating a “two-tier workplace, significantly impacting the job security of younger dockworkers.” They reiterated demands for “more stable schedules” saying the strike is over long-simmering work-life issues. They accused employers of refusing to budge on the scheduling issues.
The Maritime Employers Association in Quebec had set a deadline of Sunday, November 10, for an agreement. When it did not come, they followed through on earlier statements and locked down the Port of Montreal. At the same time, they appealed to the federal government to intervene.
On the West Coast similar issues are also holding up a new contract and also led to a lockout starting Monday afternoon, November 4. The foreman’s union cites the impact of automation targeting DP World while saying automation was impacting staffing and work schedules. The sides met briefly on Saturday afternoon, along with federal mediators, but the talks were quickly called off with no progress and no new dates.
“The country is effectively advertising it’s closed for business,” said transportation expert Pascal Chan of the Canadian Chamber of Commerce. The Canadian Manufacturers & Exporters association also expressed its frustration following similar statements from commerce leaders and business executives in British Columbia last week.
Collectively, the ports involved in the strike move C$1.2 billion in commerce daily and are vital to Canadian industry. British Columbia’s ports handled more than US$575 million a day of goods while Montreal moves nearly US$300 million a day. The lockouts have closed all the container terminals and general cargo with only grain terminals continuing to operate.
Union officials are accusing the employers of using the lockouts to force the federal government to get involved to settle the contract disputes. However, after expressing frustration about the slow pace last week, Labour Minister Steven MacKinnon has been silent with no actions expected today, November 11, due to the national holiday.
Port of Montreal’s CEO Julie Gascon briefed the media predicting that it is only a “matter of days” before the lockout begins impacting the broader economy and consumers. Port officials said the first impact is on truckers and others in the logistics industry, but it quickly would spread to manufacturers and retailers.
Carriers have limited options, but Maersk and CMA CGM both said they expected to divert ships to Halifax or St. John while on the West Coast, the only option is U.S. ports. Canada’s rail lines have also begun to take steps to limit the impact including stopping to accept exports bound for the ports.
Last year, Prime Minister Justin Trudeau waited but after a 13-day strike at the West Coast ports convened a government council pressuring the union and employers into a settlement. With the country’s largest ports now all in lockdown, business leaders and trade associations are again calling on the government to act immediately to get the supply chains reopened.
https://maritime-executive.com/article/canada-s-supply-chains-in-jeopardy-as-montreal-and-bc-lookout-dockworkers
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