Dockworkers Call Off Strike in Canada After 24 Hours of Drama
Randy Thanthong-Knight and Robert Tuttle
Wed, July 19, 2023
(Bloomberg) -- Workers at Canada’s west coast ports withdrew plans to go back on strike, just hours after threatening to restart a disruption that would have paralyzed shipments at the country’s busiest maritime hub.
The International Longshore & Warehouse Union had told workers late Tuesday to go back on strike after rejecting a tentative contract. That decision was ruled “unlawful” on Wednesday morning by Canada’s industrial-relations board because the union failed to give 72 hours of notice.
So the union gave that notice, warning that a strike would instead begin Saturday at 9 a.m. Vancouver time. It then canceled it, according to a statement Wednesday evening that didn’t give reasons or further details.
“The past 24 hours have demonstrated that this continues to be a fluid and unpredictable situation,” the BC Maritime Employers Association, which employs the union’s workers, said in a statement. The group said it would say more once it receives clarification.
More than 7,000 workers at British Columbia ports had already been on strike July 1 to July 13 before a tentative agreement briefly put an end to the walkout. But the union’s caucus rejected the deal.
Labor Minister Seamus O’Regan’s office said workers are expected to return to their jobs Thursday, but the government is ready for any eventuality if things change.
The board of trade in Vancouver, Canada’s most important port, has estimated the strike has so far disrupted C$10.6 billion ($8.1 billion) worth of cargo. Several industry groups, including the Canadian Chamber of Commerce and the Forest Products Association of Canada, have demanded action from Prime Minister Justin Trudeau’s government to end the strike.
The government has been reluctant to issue back-to-work legislation, given that it has an alliance in parliament with a union-friendly opposition party.
Trudeau met with ministers and senior officials Wednesday and “stressed the critical importance of resuming operations,” according to a statement. He also “directed them to pursue all available options to ensure the stability of our supply chains and to protect Canadian jobs and our economy.”
The turmoil at the ports is being felt in Canada’s agricultural sector. Canpotex, the potash-exporting joint venture of Nutrien Ltd. and Mosaic Co., said earlier it was withdrawing all new sales offers. Nutrien has curtailed production at two potash mines in Saskatchewan.
The strike had also affected small businesses that were hit with thousands of dollars of storage fees for goods stuck at ports, according to Greg Wilson, director of government relations at the Retail Council of Canada. “This sort of disruption can be the end of a small business.”
The key sticking points in the negotiations appeared to be the length of the agreement and pay raises. The four-year agreement was “far too long” given economic uncertainty, and employers had “not addressed the cost of living issues” that workers have faced, the ILWU said in a statement.
BCMEA, the employers’ group, said the deal was “fair and balanced” and that it would allow workers to receive a 19.2% wage increase over four years, which it described as above industry standards.
The labor unrest shows workers are pushing to recoup purchasing power lost over the past two years, even as the rate of inflation eases. The port strike came just months after federal workers walked out to demand higher wages.
It also points to the possibility that more strike votes could be coming this year. The period of high inflation in the 1970s and 1980s led to a surge in strikes and lockouts in the country, most of which lagged the runup in prices by several months and remained high for years, data on work stoppages in Canada show.
--With assistance from Curtis Heinzl.
Randy Thanthong-Knight and Robert Tuttle
Wed, July 19, 2023
(Bloomberg) -- Workers at Canada’s west coast ports withdrew plans to go back on strike, just hours after threatening to restart a disruption that would have paralyzed shipments at the country’s busiest maritime hub.
The International Longshore & Warehouse Union had told workers late Tuesday to go back on strike after rejecting a tentative contract. That decision was ruled “unlawful” on Wednesday morning by Canada’s industrial-relations board because the union failed to give 72 hours of notice.
So the union gave that notice, warning that a strike would instead begin Saturday at 9 a.m. Vancouver time. It then canceled it, according to a statement Wednesday evening that didn’t give reasons or further details.
“The past 24 hours have demonstrated that this continues to be a fluid and unpredictable situation,” the BC Maritime Employers Association, which employs the union’s workers, said in a statement. The group said it would say more once it receives clarification.
More than 7,000 workers at British Columbia ports had already been on strike July 1 to July 13 before a tentative agreement briefly put an end to the walkout. But the union’s caucus rejected the deal.
Labor Minister Seamus O’Regan’s office said workers are expected to return to their jobs Thursday, but the government is ready for any eventuality if things change.
The board of trade in Vancouver, Canada’s most important port, has estimated the strike has so far disrupted C$10.6 billion ($8.1 billion) worth of cargo. Several industry groups, including the Canadian Chamber of Commerce and the Forest Products Association of Canada, have demanded action from Prime Minister Justin Trudeau’s government to end the strike.
The government has been reluctant to issue back-to-work legislation, given that it has an alliance in parliament with a union-friendly opposition party.
Trudeau met with ministers and senior officials Wednesday and “stressed the critical importance of resuming operations,” according to a statement. He also “directed them to pursue all available options to ensure the stability of our supply chains and to protect Canadian jobs and our economy.”
The turmoil at the ports is being felt in Canada’s agricultural sector. Canpotex, the potash-exporting joint venture of Nutrien Ltd. and Mosaic Co., said earlier it was withdrawing all new sales offers. Nutrien has curtailed production at two potash mines in Saskatchewan.
The strike had also affected small businesses that were hit with thousands of dollars of storage fees for goods stuck at ports, according to Greg Wilson, director of government relations at the Retail Council of Canada. “This sort of disruption can be the end of a small business.”
The key sticking points in the negotiations appeared to be the length of the agreement and pay raises. The four-year agreement was “far too long” given economic uncertainty, and employers had “not addressed the cost of living issues” that workers have faced, the ILWU said in a statement.
BCMEA, the employers’ group, said the deal was “fair and balanced” and that it would allow workers to receive a 19.2% wage increase over four years, which it described as above industry standards.
The labor unrest shows workers are pushing to recoup purchasing power lost over the past two years, even as the rate of inflation eases. The port strike came just months after federal workers walked out to demand higher wages.
It also points to the possibility that more strike votes could be coming this year. The period of high inflation in the 1970s and 1980s led to a surge in strikes and lockouts in the country, most of which lagged the runup in prices by several months and remained high for years, data on work stoppages in Canada show.
--With assistance from Curtis Heinzl.
VANCOUVER — The labour dispute at British Columbia ports is receiving a federal reaction previously used for events including the start of the COVID-19 pandemic, blockades associated with the Freedom Convoy, and the short-lived rebellion in Russia last month.
Prime Minister Justin Trudeau convened the government's incident response group on Wednesday to discuss the conflict between the International Longshore and Warehouse Union Canada and the BC Maritime Employers Association as the union threatened strike action again.
The response group, made up of cabinet ministers and senior officials, is described as only being convened at times of "national crisis," or to discuss events with major implications for Canada.
The actions were part of a chaotic 24-hour period at the port, where union pickets went up, were forced down by a labour board, then job action was threatened again for Saturday only to be rescinded by the union late Wednesday.
The union said in a brief note to its locals that strike notice set for July 22 at 9 a.m. "has now been removed."
With the 72-hour notice lifted, the union can't resume strike action unless it files another notice, according to the Canada Industrial Relations Board decision issued against the union on Wednesday.
A statement from the Prime Minister's Office said the response group discussed the impact of the situation, which is creating severe disruptions to Canada’s largest export and import gateway.
It said strike action earlier this month froze billions of dollars' worth of goods from moving in and out.
"The prime minister stressed the critical importance of resuming operations in our ports as soon as possible. Workers and employers across Canada — and all Canadians — cannot face further disruption," the statement said.
Trudeau asked the group to pursue all available options to ensure the stability of supply chains and to protect Canadian jobs and the economy.
The meeting comes as the federal government faces increasing pressure to bring in back-to-work legislation, with industry groups warning of continued impacts on the economy if a strike is allowed to resume.
The union said in a statement earlier Wednesday that it "regrets" the economic impacts of its job action and wants Ottawa to "allow free collective bargaining to occur."
Union president Rob Ashton said in a statement that the union's caucus "was not satisfied the mediator’s deal met the membership’s goals and directed the bargaining committee to seek a negotiated agreement."
The union has said the four-year term of the mediator's proposed agreement was "far too long" and "employers have not addressed the cost-of-living issues" faced by workers in the last few years.
About 7,400 workers at more than 30 B.C. port terminals and other sites began striking on Canada Day and originally returned to work last Thursday after a tentative deal was drafted by a federal mediator.
Both the Canadian Chamber of Commerce and the Canadian Federation of Independent Business have called for back-to-work legislation after the original strike prevented billions of dollars' worth of goods from moving through the ports.
"The 13-day strike had already done significant damage to small businesses across the country and Canada’s international reputation as a dependable trading partner," federation executive vice-president Corinne Pohlmann said in a statement.
"To let it carry on any further is negligent and will amplify disruptions of the supply chain."
Robin Guy, vice-president and deputy leader, government relations, at the Canadian Chamber of Commerce, said further delay will cause the Canadian economy more harm.
"We’re calling on the government and all parties to agree to reconvene parliament and pass back-to-work legislation immediately," Guy said.
Nutrien Ltd. said it had curtailed production at its Cory and Rocanville potash mines in Saskatchewan due to the strike.
Manitoba Pork and Keystone Agricultural Producers say recovery from the first 13 days of the strike would have taken at least until the middle of October.
"We are already witnessing the negative consequences on our reputation as a reliable supplier. This is costing both farmers and our value-added processors. Jobs in every region of Manitoba will be impacted," KAP general manager Brenna Mahoney said in a statement.
Conservative Leader Pierre Poilievre said Wednesday that Trudeau must end the strike immediately because of the massive cost to workers, consumers and businesses.
"We're calling on him to deliver a plan to end this strike within the next 24 hours," Poilievre said.
However, NDP transport critic Taylor Bachrach said it’s part of union bargaining rights to be able to reject an agreement.
"We know that their team is ready to get back to the table right away and we encourage other parties to do the same," Bachrach said.
"We are also renewing our call for the federal government to support the collective bargaining process, rather than resorting to the sort of back-to-work legislation that Liberal and Conservative governments have imposed far too often."
B.C. Premier David Eby said relying on Ottawa to bring in back-to-work legislation would not be a quick solution for a minority Parliament.
"The parties need to accept the responsibility that they have on both sides to come to the table in good faith and solve this for Canadians quickly."
Federal Labour Minister Seamus O'Regan and Transport Minister Omar Alghabra issued a statement late Tuesday saying workers and employers across Canada cannot face further disruption and that they were looking at all options.
The ministers said they have been patient and respected the collective bargaining process, but they need the ports operating.
"The deal presented to the parties was the result of a constructive and substantive collective bargaining process," the ministers said in their statement.
"It represented a fair and balanced deal. It was informed by weeks of collective bargaining and drafted by third-party mediators in the interest of both the union and the employer."
While national figures had their say, closer to the ports themselves, Prince Rupert Mayor Herb Pond said it was disappointing that the strike wasn't ending, after a “collective sigh of relief” when news of a possible deal came down.
Pond said local businesses certainly feel the impact when families watch their spending as with so many workers on picket lines.
”There are two major arteries that feed the Canadian economy from the West and it's Prince Rupert and it is Vancouver, and when you choke those off it won't be long until people feel that impact.”
— With files by Chuck Chiang and Craig Wong
This report by The Canadian Press was first published July 19, 2023.
Timeline of events surrounding failed talk leading to the B.C. port strike
The union representing about 7,400 port workers in British Columbia has rescinded a 72-hour strike notice that could have shut down cargo movements across the province again on Saturday.
Here is a timeline surrounding the events.
2022
Nov. 30: The British Columbia Maritime Employers Association provides notice to commence collective bargaining to the International Longshore and Warehouse Union Canada.
2023
Feb. 16: Negotiations begin.
March 20: The ILWU serves a notice of dispute to the federal government, signalling an impasse, and requests the appointment of a conciliation officer.
March 29: Talks enter a 60-day conciliation period.
March 31: The existing collective agreement between the BCMEA and the ILWU expires.
May 30: Conciliation ends. Talks enter a cooling-off period of 21 days.
June 5: The ILWU's negotiating committee authorizes a strike vote to be conducted on June 9 and 10.
June 12: The ILWU says members voted 99.24 per cent in favour of supporting strike action if necessary.
June 28: The ILWU serves 72-hour strike notice.
June 30: Both sides say cruise ships will continue to be serviced.
July 1: Strike commences at B.C. ports, shutting down operations at most of the province's marine terminals.
July 3: The ILWU says the BCMEA has walked away from the negotiating table. The BCMEA says it is a pause to reset talks.
July 8: The two sides meet again with mediators about a deadlock on maintenance work. The BCMEA says the ILWU rejected a proposal.
July 11: Federal Labour Minister Seamus O'Regan asks a mediator to draft terms for a potential settlement agreement.
July 13: The BCMEA says a tentative, four-year agreement has been reached with the ILWU. Port operations resume. In a tweet, O'Regan declares "the strike is over."
July 18: The ILWU says its leadership caucus voted down the mediator's terms, and workers are back on strike. Picket lines resume. O'Regan and federal Transport Minister Omar Alghabra say in a statement that the disruptions at B.C. ports "cannot go on" and officials are now looking at "all options."
July 19: The Canada Industrial Relations Board rules the ILWU's move to strike on July 18 was unlawful because no 72-hour notice was provided. The ILWU issues a new 72-hour notice to strike, but rescinds the notice hours later. Prime Minister Justin Trudeau convenes the incident response group.
This report by The Canadian Press was first published July 19, 2023.
The union representing about 7,400 port workers in British Columbia has rescinded a 72-hour strike notice that could have shut down cargo movements across the province again on Saturday.
Here is a timeline surrounding the events.
2022
Nov. 30: The British Columbia Maritime Employers Association provides notice to commence collective bargaining to the International Longshore and Warehouse Union Canada.
2023
Feb. 16: Negotiations begin.
March 20: The ILWU serves a notice of dispute to the federal government, signalling an impasse, and requests the appointment of a conciliation officer.
March 29: Talks enter a 60-day conciliation period.
March 31: The existing collective agreement between the BCMEA and the ILWU expires.
May 30: Conciliation ends. Talks enter a cooling-off period of 21 days.
June 5: The ILWU's negotiating committee authorizes a strike vote to be conducted on June 9 and 10.
June 12: The ILWU says members voted 99.24 per cent in favour of supporting strike action if necessary.
June 28: The ILWU serves 72-hour strike notice.
June 30: Both sides say cruise ships will continue to be serviced.
July 1: Strike commences at B.C. ports, shutting down operations at most of the province's marine terminals.
July 3: The ILWU says the BCMEA has walked away from the negotiating table. The BCMEA says it is a pause to reset talks.
July 8: The two sides meet again with mediators about a deadlock on maintenance work. The BCMEA says the ILWU rejected a proposal.
July 11: Federal Labour Minister Seamus O'Regan asks a mediator to draft terms for a potential settlement agreement.
July 13: The BCMEA says a tentative, four-year agreement has been reached with the ILWU. Port operations resume. In a tweet, O'Regan declares "the strike is over."
July 18: The ILWU says its leadership caucus voted down the mediator's terms, and workers are back on strike. Picket lines resume. O'Regan and federal Transport Minister Omar Alghabra say in a statement that the disruptions at B.C. ports "cannot go on" and officials are now looking at "all options."
July 19: The Canada Industrial Relations Board rules the ILWU's move to strike on July 18 was unlawful because no 72-hour notice was provided. The ILWU issues a new 72-hour notice to strike, but rescinds the notice hours later. Prime Minister Justin Trudeau convenes the incident response group.
This report by The Canadian Press was first published July 19, 2023.
B.C. ports shut down again as union rejects tentative deal, resumes strike action
VANCOUVER — British Columbia's ports are facing an uncertain future after the longshore workers union rejected a tentative mediated deal and resumed strike action that had been put to a temporary halt only last week.
The International Longshore and Warehouse Union Canada says in Tuesday's decision to go back to picket lines that "employers have not addressed the cost of living issues" faced by workers in the last few years.
The union representing about 7,400 workers who were previously on strike from July 1 to 13 says its priority has always been to protect its jurisdiction, and that position "has not changed."
University of British Columbia professor emeritus Mark Thompson says the situation is now in "uncharted territory" because the strike is unusually long for Vancouver.
Thompson says the federal government has been very reluctant to enact back-to-work legislation in labour disputes, but strikes disrupting the Port of Vancouver — Canada's largest — have not lasted more than two weeks since at least the 1980s.
The renewed ILWU strike means more than 30 port terminals and other sites across the province are shut down again for an indeterminate time.
The tentative four-year deal that was rejected by the union's caucus had been proposed by a federal mediator at the instruction of Labour Minister Seamus O'Regan.
A late-night joint statement was released by O'Regan, and Transport Minister Omar Alghabra, confirming the employers' association agreed to the terms of the deal, but the workers' union leadership decided not to recommend ratification of the terms to its members.
The pair also expressed disappointment, saying that the mediated deal ending the work stoppage was the result of a constructive and substantive collective bargaining process.
The ministers' joint statement also seems to hint at a possible move to introduce back-to-work legislation, stating, "We have been patient. We have respected the collective bargaining process. But we need our ports operating."
This report by The Canadian Press was first published July 19, 2023.
The Canadian Press
VANCOUVER — British Columbia's ports are facing an uncertain future after the longshore workers union rejected a tentative mediated deal and resumed strike action that had been put to a temporary halt only last week.
The International Longshore and Warehouse Union Canada says in Tuesday's decision to go back to picket lines that "employers have not addressed the cost of living issues" faced by workers in the last few years.
The union representing about 7,400 workers who were previously on strike from July 1 to 13 says its priority has always been to protect its jurisdiction, and that position "has not changed."
University of British Columbia professor emeritus Mark Thompson says the situation is now in "uncharted territory" because the strike is unusually long for Vancouver.
Thompson says the federal government has been very reluctant to enact back-to-work legislation in labour disputes, but strikes disrupting the Port of Vancouver — Canada's largest — have not lasted more than two weeks since at least the 1980s.
The renewed ILWU strike means more than 30 port terminals and other sites across the province are shut down again for an indeterminate time.
The tentative four-year deal that was rejected by the union's caucus had been proposed by a federal mediator at the instruction of Labour Minister Seamus O'Regan.
A late-night joint statement was released by O'Regan, and Transport Minister Omar Alghabra, confirming the employers' association agreed to the terms of the deal, but the workers' union leadership decided not to recommend ratification of the terms to its members.
The pair also expressed disappointment, saying that the mediated deal ending the work stoppage was the result of a constructive and substantive collective bargaining process.
The ministers' joint statement also seems to hint at a possible move to introduce back-to-work legislation, stating, "We have been patient. We have respected the collective bargaining process. But we need our ports operating."
This report by The Canadian Press was first published July 19, 2023.
The Canadian Press
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