Global Courant
A container ship is docked in the Port of Vancouver on November 20, 2021.
Justin Sullivan | Getty Images News | Getty Images
The BC Maritime Employers Association said on Monday that collective bargaining is not progressing and that a “change of course” is needed.
The BCMEA, which represents port owners, said the International Longshore & Warehouse Union Canada’s Longshore Division “appears to have entrenched their positions,” rather than working toward a fair deal.
“The BCMEA has gone as far as possible on core issues,” the group said in a statement. “ILWU Canada must decide whether to continue this strike with no hope of a settlement, or to significantly change their stance so that a fair and balanced deal can be reached.”
The employer’s comments follow calls for government intervention in drafting back-to-work legislation.
When asked if the government is considering such a measure, the Labor Secretary’s office told CNBC: “We don’t look beyond the negotiating table because the best deals are made at the table. Federal mediators continue to support the parties in their negotiations. “
Canada’s parliament is currently not in session and would have to be recalled, which would take several days. While remote voting is available, there must be a quorum in the room to vote.
Rob Ashton, president of ILWU Canada, did not respond to CNBC’s request for comment at time of publication.
The union’s US West Coast chapter has supported their Canadian counterparts’ strike. President Willie Adams traveled Monday to meet with Ashton. A photo at Canada’s ILWU Facebook page documented the meeting.
According to ship data collected by MarineTraffic, a total of 24 ships transport containers for the ports of Vancouver and Prince Rupert. The value of the combined 181,458 containers floating off the ports of Vancouver and Prince Rupert reached $12 billion, based on a value of $65,225 per container and Canadian customs records.
The ILWU Canada division strike began on Saturday. More than 99% of union members, which support West Coast ports such as Vancouver and Prince Rupert, voted in favor of the strike last month. The notice of the strike came on Wednesday.
In a live Facebook commentary on Sunday evening, Rob Ashton, president of ILWU Canada, pleaded for fair wages and the union’s willingness to sit around the table and negotiate.
“The ILWU Canada Longshore Division has not taken this decision lightly, but for the future of our workforce, we had to take this step,” Ashton said in a message. “We still hope that a settlement will be reached through FREE collective bargaining!”
The union has been open to negotiations with the BCMEA since February and remains ready to continue work on a contract, Ashton added.
The two sides disagree on issues such as automation, the use of contract work and the cost of living for employees. Two mediators appointed by the Canadian government oversaw the talks, which continued until the end of May. Those conversations were followed by a so-called cooling-off period between the two groups.
Industry followers warn that a strike in western ports around the holiday season could hit the US economy. The Port of Vancouver and the Port of Prince Rupert are popular destinations for US trade, especially for goods coming from Asia. Some logistics managers have told CNBC that train service from those ports is a lot faster than going through Seattle or Tacoma, Washington.
The International Longshoremen’s Association has said so does not accept diverted freight from ports with striking workers. The head of the International Longshore and Warehouse Union, which represents dock workers on the west coast of the United States, has declaration of solidarity with the Canadian union, but did not mention any specific action.
The strike could lead to congestion in these ports with dockers unable to unload ships. Congestion can lead to backlogs and lead to delayed pick-ups from terminals, which can then lead to late fees that are often passed on to consumers – similar to what happened during the pandemic.
“ITS Logistics has significantly increased truck capacity on all rail ramps in the Chicago area to move as many containers as possible before the container congestion we expect from the strike occurs,” said Paul Brashire, vice president of dragage and intermodal at ITS logistics. “The strike creates an artificial backup of containers that will create congestion once the containers are processed through the ports.”
Canadian ports handle approximately $225 billion in cargo each year, with items ranging from household goods, electronics and clothing transported by rail. According to Port Authority data, approximately 15% of consumer trade passes through the Port of Vancouver to or from the US. About two-thirds of the containerized import volume going to the Port of Prince Rupert goes to the US, port data shows.
Three class 1 railways operate in these ports: CN, Canadian Pacific and BNSF, a subsidiary of Berkshire Hathaway
The American Apparel and Footwear Association and the National Retail Federation told CNBC they are urging the Canadian government to keep parties at the table. This strike is at the start of the peak season when holiday and back-to-school items come in.
