Friday, June 07, 2024

Canadian border guards could strike 
Friday 4 PM, most required to work

Reuters
Detroit Free Press

Thousands of Canadian border guards at airports and land crossings with the U.S. were poised to strike Friday as they worked to reach an agreement with their employer, the federal government.

But with 90% of frontline border officers with the Canada Border Services Agency (CBSA) designated essential workers, according to the government, it was not clear what form that strike could take.

The U.S. is Canada's biggest trading partner, with an average of $2.63 billion worth of goods and services crossing the border in both directions combined in 2023, according to the Canadian Chamber of Commerce.


The two sides have been negotiating with the assistance of a mediator this week and talks were ongoing Thursday morning, a Public Service Alliance of Canada (PSAC) spokesperson said, with a strike deadline of 4 p.m. Friday.

Sticking points include wages, remote work, retirement benefits and workplace protections, according to the union.

"The border will remain open and safe," CBSA spokesperson Luke Reimer said in an email Tuesday.

He said about 4,870 of the agency's 5,400 frontline officers are designated essential, meaning they cannot legally stop working.

"Border services officers occupying essential services positions cannot work to rule and cannot intentionally slow down border processing," Canada's Treasury Board said in a statement Wednesday, adding that the CBSA "will take progressive disciplinary action or other measures" against essential workers "who engage in illegal job action."


But the discretion border officers have to stop, question and search travelers could slow cross-border traffic, said Carleton University associate professor of management Ian Lee.

"A slowdown where they really did work to rule would be just catastrophic at Pearson (Airport in Toronto) and Vancouver and Montreal," he said.

"The pressure that would be brought to bear on the government … will be so great they will have to intervene," forexample through binding arbitration or, as a last resort, back-to-work legislation, Lee said.

What it means for Detroit automakers

The Free Press reached out to several automakers for comment on the situation at the border.

Stellantis spokeswoman Jodi Tinson provided a statement noting that the company, which owns the Jeep, Ram, Chrysler, Dodge and Fiat brands, is aware of a possible labor stoppage by border agents.


“We are closely monitoring the situation and working with our transportation providers to mitigate any production impact,” the statement said.

General Motors spokesman Kevin Kelly declined to comment on the situation.

"Contingency plans are in place to minimize any impact," said Lars Weborg, Ford manufacturing spokesman.

Laurie Harbour-Felax, president and CEO of the Southfield-based consulting firm Harbour Results, said a strike by border workers would be “very problematic” for the auto industry for a couple of reasons.

One issue, she said, is that much of the automotive industry’s mold building is done in the Windsor, Ontario, area.

“There’s a whole tool industry in Canada that makes injection molds, door molds and instrument panel molds. There’s very little left here in the States,” she said. “Most of the big automotive molds are coming out of Windsor.”

It would be especially problematic for any automakers trying to manage a major product launch, she said.

Automakers, including Ford, Stellantis, GM, Honda and Toyota, as well as Tier 1 suppliers also have major operations in Canada. And lots of parts cross the border daily. In some cases, parts on the same vehicle come from plants on either side of the border, Harbour-Felax said.

Although automakers have contingency plans for dealing with bottlenecks overseas, “there’s probably not a lot of contingency plans” connected to issues related to Canada, she said.

Michael Belzer, an economics professor at Wayne State University, studied the potential impact of a shutdown of commerce in Detroit in 2003. He said that shows how long concerns about these types of issues have been percolating. More recently, they arose in connection with a 2022 shutdown of the Ambassador Bridge by truckers said to be upset in part by vaccine mandates.

That situation had swift consequences for the auto industry, with reports of GM chartering cargo planes to move parts over the border.

Belzer’s work, following the Sept. 11, 2001 terror attacks, involved thinking about a “bad actor” targeting the bridge, one of the most important crossings in North America. That work didn’t anticipate a shutdown or slowdown of all crossings, however.

“The bottom line … for Detroit, there would really be a huge disruption for the auto industry,” he said of a shutdown or significant slowdown. “It would be a major economic disruption for the U.S. and Canada.”

Notably, Wayne State in Detroit has 350 Canadian students, according to spokesman Bill Roose.

The Free Press also reached out to several hospital systems in the area, including the Detroit Medical Center, Henry Ford Health and Corewell Health, seeking comment. A couple of spokespeople said they were checking into the situation.

Reporting by Anna Mehler Paperny; Editing by Rod Nickel.

Free Press reporters Eric Lawrence and Jamie LaReau contributed.


Planning to cross the border? Here's what to know about the possible strike


A Canada Border Services Agency officer speaks to a motorist entering Canada at the Douglas-Peace Arch border crossing, in Surrey, B.C., on Monday, August 9, 2021. (Darryl Dyck / The Canadian Press)

Christl Dabu
CTVNews.ca National Affairs Writer

Luca Caruso-Moro
CTVNews.ca Breaking Digital Assignment Editor

June 6, 2024 11

As the clock ticks on toward a strike at the Canadian border, a union spokesperson says the group remains in negotiations with the government.

They have until 4 p.m. Friday to make a deal.

"If a deal is not reached, a strike will take place." Pierre St-Jacques, spokesperson for the Canada Border Services Agency (CBSA) union, wrote in an email to CTVNews.ca on Thursday.



More than 9,000 Public Service Alliance of Canada (PSAC) members who work for the CBSA, including border guards, secured a strike mandate(opens in a new tab) at the end of May, threatening to slow traffic through Canada's national entry points.


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The union says it wants "fair" wages comparable to other law enforcement agencies in Canada, changes to its workers' retirement plans, and "flexible" online and remote work options.

"We are still hopeful that we can reach an agreement to avoid strike action, but the window is closing if the government wants to avoid any potential delays at Canada’s borders," wrote St-Jacques.

Claire Fan, an economist with the Royal Bank of Canada in Toronto, said in an interview with CTV's News Channel on Thursday that she expects the potential strike to have a spillover impact. She says auto manufacturers could see the biggest economic hit. Tourism and restaurants could also be hurt if travellers call off their trips as the travel season starts to ramp up.

Up to 60 per cent of goods trade across the border between Canada and the United States was done with trucks in 2023, she noted.

Despite the potential economic impact of a strike, it wouldn't be a full shutdown of the border since 90 per cent of front-line border officers are considered essential workers and can't stop working during a strike. "That in itself is good news," Fan said. "It means goods will still be able to move across borders for the most part."

Instead, border workers may implement work-to-rule efforts, which could cause delays with vehicles taking longer to pass through the border, Fan said.
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In 2021, the union carried out a work-to-rule effort, slowing traffic into long lines of tourist and commercial vehicles waiting to cross. A deal was reached after an extended 36-hour negotiation.

"While the government fully respects the right of employees to gather and demonstrate lawfully, unlawful job action(opens in a new tab) will not be tolerated," reads a Wednesday release from the Treasury Board of Canada Secretariat.

"Negotiation is a process of give and take. The government is prepared to make concessions, but there needs to be movement on both sides," it reads.

The latest GDP numbers(opens in a new tab) indicate many businesses are holding more inventories in anticipation of potential disruptions to supply chains, among lessons they learned over the last few years, Fan added.

"Businesses are precautionarily holding inventories so potentially that could offset some of the impact," she said.Sign up for breaking news alerts from CTV News, right at your fingertips

Jim Cooper, CEO of Canarm Limited(opens in a new tab), a ventilation company with its headquarters in Brockville, Ont., is worried about the impact of a strike. "The border is a critical link to us being successful as a manufacturer in Canada," Cooper said in an interview with CTV News. "We've got product crossing the border every single day of week.

The association of Canadian Manufactures and Exporters (CME) estimates that about $3.1 billion in goods cross the Canadian border each day. Last year, cross border trade totalled $1.6 trillion, it says.

“We need the federal government to take a proactive approach to preventing these disruptions,” wrote CME president Denis Darby in a Wednesday news release.



More than 9,000 Canada Border Services Agency workers begin job action Friday if agreement not reached


PSAC
June 4, 2024

The clock is ticking to avoid a nationwide strike at Canada’s borders by more than 9,000 Canada Border Services Agency (CBSA) employees. Members of the Public Service Alliance of Canada and the Customs and Immigration Union (CIU) will begin job action across the country starting June 7 at 4 p.m. ET if an agreement is not reached at the table with CBSA and Treasury Board this week.

“We are still hopeful that we can reach an agreement to avoid strike action and any potential delays at Canada’s borders," said Sharon DeSousa, PSAC National President. “But the clock is ticking for Trudeau’s Liberal government to get to work on a fair contract for our members.”

PSAC members in the FB bargaining group have been without a contract for over two years. Key issues in this round of bargaining include fair wages that are aligned with other law enforcement agencies across the country, flexible telework and remote work options, equitable retirement benefits for CBSA law enforcement personnel and stronger workplace protections.

Job action by CBSA personnel in 2021 nearly brought commercial cross-border traffic to a standstill, causing major delays at airports and borders across the country and a marathon 36-hour bargaining session to reach an agreement.

“Our members have overwhelmingly told us they are prepared to fight for fair wages, equitable retirement and to make CBSA a better place to work,” said Mark Weber, CIU National President. “It’s time for the government to step up for CBSA employees.”

The two sides remain in negotiations this week with the assistance of a mediator in a last-ditch effort to reach an agreement.

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