Trade News

Canada Averts West Coast Strike Threat at British Columbia Ports

Written by Cole Marketing | Jul 10, 2024 2:00:00 PM

As federal mediators worked with the two parties to reach an agreement, the union and employers withdrew the strike and lockout notices.

The B.C. Maritime Employers Association (BCMEA) has withdrawn its West Coast strike and lockout notice following a decision by the Canada Industrial Relations Board (CIRB). The CIRB found that the union’s strike notice violated the Canada Labour Code and directed the union to withdraw its notice. “The Board directs the union to rescind its strike notice,” CIRB stated in an order.

The averted West Coast strike, scheduled for July 5, was planned by the International Longshore and Warehouse Union (ILWU) Canada Local 514 against DP World Canada in response to issues with port operator DP World’s labor contracts. These concerns included changes to overtime, job redundancies due to automation, and retirement benefits.

Canada’s Labor Minister Seamus O’Regan announced on social media platform X that “Federal mediators are working with the parties to make a deal,” emphasizing the government’s commitment to resolving the dispute.

Union’s West Coast strike notice found unlawful

BCMEA had filed a complaint with CIRB last week, asserting that the union’s 72-hour West Coast strike notice was issued in “bad faith” and was contrary to the Canada Labour Code.

At an urgent weekend hearing, CIRB determined that the union failed to bargain in good faith when it conducted a strike vote among employees of only one member employer of the BCMEA and issued a strike notice based on that vote. Accordingly, CIRB directed the union to withdraw the strike notice and inform its members.

Automation dispute at the core of the West Coast strike notice

The dispute primarily revolves around DP World Canada’s plan to implement remotely controlled Rail Mounted Gantry (RMG) cranes at its Vancouver terminal. ILWU Canada has raised concerns over job security and manning agreements related to these automated systems, stating that 99% of the nearly 600 longshore foremen who voted were opposed to a "final offer" from the employers' association.

Frank Morena, President of ILWU Local 514, highlighted that DP World Canada had put the union on notice in mid-December 2023 about introducing automation unilaterally without negotiating a manning agreement with Local 514, although an agreement had been reached with ILWU Local 500, which represents longshoremen and equipment operators.

“Following this refusal, the Union tabled a manning proposal during collective bargaining with the BCMEA, which continued to refuse to negotiate a meaningful manning proposal. Notwithstanding that, another BCMEA employer, GCT, successfully negotiated a manning agreement with the Union years ago when it introduced automation,” Morena said.

Potential impact of the West Coast strike

The BCMEA had warned of significant disruptions if the West Coast strike occurred. Had the strike proceeded, it could have led to a coast-wide lockout, potentially shutting down all cargo operations of member companies across British Columbia, except for cruises and grain vessel operations.

While the immediate threat of industrial action has been removed, the CIRB will hold a hearing in early August to address BCMEA’s complaint regarding the union’s attempt to introduce a DP World-specific manning proposal into the collective bargaining process.

Both parties are expected to return to the negotiation table to address the unresolved issues, including allowances, benefits, and the implications of automation in the ports.

Please contact one of our trade professionals for more information about this story and how it could affect your West Coast imports.