The Canadian Government Intervenes in Port Labour Disputes to Secure Trade Flow
Prolonged labour disputes are disrupting trade flow at Canada’s major seaports. The government’s intervention will ensure operations resume at the ports of Vancouver and Montreal.
On November 12, 2024, Labour Minister Steven MacKinnon directed the Canada Industrial Relations Board (CIRB) to order the immediate resumption of operations at the ports of Vancouver and Montreal and to address ongoing labour disputes.
This directive includes a mandate to shift negotiations to binding arbitration, a step intended to quickly and permanently resolve the labour disputes that have been going on for months.
With this move, the government aims to stabilize the economy, ensure trade continuity, and minimize further disruptions to Canada’s trade.
The labour disputes had halted or delayed cargo, putting pressure on both importers and exporters to find alternative solutions. The significant operational disruptions resulted in an estimated economic impact of CAD$1.3 billion per day.
The two major seaports of Vancouver and Montreal are considered hubs for the flow of goods across North America.
The Port of Vancouver, Canada’s largest port, handles significant volumes of container traffic and is vital for exporting commodities. The Port of Montreal, which serves as the main trade gateway between Canada and Europe, is similarly critical for containerized imports and exports.
During a press conference in Ottawa, Minister MacKinnon referred labour disputes at ports in British Columbia and Quebec to binding arbitration. He instructed workers to return to work after they reached what he referred to as a "total impasse."
MacKinnon also noted that, despite a lengthy negotiation process and the intervention of specialists from his department’s Federal Mediation and Conciliation Service, the negotiations had stalled.
"I have directed the Canada Industrial Relations Board to order that all operations and duties at the ports resume and to assist the parties to settle their collective agreements by imposing final and binding arbitration," MacKinnon said in the press conference.
He said his decision will bring "the necessary resolutions for both workers and employers.”
Additionally, Minister MacKinnon emphasized the government’s commitment to safeguarding Canada’s critical supply chain, particularly as the nation heads into the peak shipping season.
According to MacKinnon, prolonged port closures would intensify economic pressures, affect business inventory levels, and limit the availability of goods across Canada.
The Maritime Employers Association (MEA), representing employers in the maritime transportation industry, has expressed support for Minister MacKinnon’s decision to intervene and resolve the total impasse in the dispute with the Longshoremen’s Union, CUPE 375.
The MEA is now waiting for instructions from the CIRB on the next steps and will take the necessary measures to ensure that activities resume as quickly as possible at the Port of Montreal.
Similarly, operations in Vancouver are set to resume today, as the BC Maritime Employers Association (BCMEA) said it would fully comply with the CIRB's interim order.
“In partnership with our member employers, the BCMEA is committed to working closely with ILWU Local 514, ILWU longshore locals and supply chain partners to safely and efficiently resume operations at Canada’s West Coast ports,” the association said.
The CIRB has scheduled a hearing for the ILWU Local 514 and BCMEA on Monday, November 18, 2024, to resolve the ongoing labour disputes.
For more information about this update and its impact on your import business, please reach out to one of our trade professionals.