Market Matters Blog

The International Longshore Workers Union (ILWU 514) issued a 72-hour strike notice to the British Columbia Maritime Employers Association (BCMEA) on Monday, Nov. 4. The BCMEA then issued a lock out of workers that same day. The work stoppage will affect shipments at West Coast ports BCMEA member terminals.

"ILWU Local 514's strike action has already begun to impact B.C.'s waterfront operations, and strike activity can easily escalate, including a complete withdrawal of labour without notice," said BCMEA on its website. "Accordingly, to facilitate a safe and orderly wind-down of operations, the BCMEA has made the difficult decision to lockout forepersons and other Local 514 members on Nov. 4, 2024, commencing on the 16:30 shift and continuing until further notice. This lockout will not apply to grain or cruise operations," said BCMEA. https://www.bcmeanegotiations.com/…

Some of the commodities affected are potash, coal, pulse crops, beef, pork and forestry products.

On Nov. 5, Fertilizer Canada in a press release on their website said: "Fertilizer Canada is warning about the severe impact of the West Coast ports work stoppage that began Nov. 4, with potash fertilizer among the hardest-hit commodities. West Coast ports handle over 21,000 metric tons (mt) of potash daily for export to global markets, and each day of a shutdown will result in up to $9.7 million in lost sales revenue. As the world's leading producer and exporter of potash -- a key ingredient in global food security -- Canada's disrupted supply chains risk ceding market share to competitors like Russia and Belarus."

"Fertilizer is essential to food security, and this stoppage will have a devastating impact on Canada's potash industry," said Karen Proud, president and CEO of Fertilizer Canada. "Our overseas customers depend on us to deliver this crucial input. If we cannot supply them with Canadian-produced fertilizer, they will look to other countries, such as Russia and Belarus, who operate with far fewer environmental, safety and ethical protections. The time to act is now. We need the government to step up and strengthen our supply chains."

Fertilizer Canada is calling on the federal government to "amend the Canada Labour Code section 87.7 to ensure the continuous movement of fertilizer products at ports during labour disputes. Polling shows that eight out of 10 Canadians support the uninterrupted shipment of products vital to domestic and global food security during work stoppages." https://fertilizercanada.ca/…

Throughout nearly two years of negotiations with ILWU Local 514, the BCMEA said it has prioritized getting to a reasonable, balanced deal that recognizes the hard work of the 730 forepersons working at Canada's West Coast ports. BCMEA Final offer letter: https://www.bcmeanegotiations.com/…

In a Nov. 4 article, FreightWaves reported that union president Frank Morena stated in a Nov. 3 news release, "Let me be crystal clear to the BCMEA: Our union will not sign any contract which includes concessions that remove existing parts of our collective agreement that our members fought long and hard for over many years."

Labour Minister Steven MacKinnon said in a post on X on Nov. 2, that he "spoke with the BCMEA and ILWU 514 on the negotiations for their new collective agreement. Federal mediators are on site, ready to assist the parties. It is the responsibility of the parties to reach an agreement. Businesses, workers, and farmers are counting on them to get a deal."

An estimated $800 million worth of trade flows through Canada's West Coast ports each day.

MONTREAL PORT STRIKE CONTINUES

On Oct. 28, CUPE 375, the union representing Port of Montreal longshore workers, said on their website they issued a strike notice for workers at Termont corporation terminals. "Termont is targeted because it is the only company at the Port of Montreal to modify schedules in a punitive way. The local held a press conference today to provide an update on its tactics," noted the press release.

"Termont is provoking longshore workers and their local by using schedules that have negative impacts on work-life balance. If we reach a permanent agreement on this issue, we could avoid a strike set to begin on Oct. 31. Let's resolve the issues around work schedules, and then I am confident we can resolve the rest," said Michel Murray, CUPE representative.

"Longshore workers are ready to sit at the bargaining table. We are waiting to be invited and we have solutions in mind, but the other party must also be in solution mode," Murray said. Longshore workers have been without a collective agreement since Dec. 31, 2023.

The Maritime Employers Association (MEA) said on their website Thursday, Oct. 31, it "deplores the new unlimited strike called by the Port of Montreal Longshoremen's Union that specifically paralyzes the two terminals operated by Termont as of 11:00 a.m. The MEA cannot grant the Union's demand to change work hours without formal negotiations. The schedules used on the different docks -- shift and relay -- called into question by the Union in recent days, are enshrined in the collective agreement in force and cannot be used as a bargaining chip for a strike targeting a single operator, as is the case today."

The Maritime Employers Association also said in the news release, it "reiterates its request that the federal Minister of Labour intervene to bring the parties back to the negotiating table to put an end to this conflict that affects our clients, partners and their trust in the Port of Montreal."

The strike affects 15% of the total volume handled at the Port of Montreal, which is 40% of container traffic.

Maersk Canadian West Coast Maritime Strike Advisory (includes CN Railway and CPKC Railway reactions): https://www.maersk.com/…

Mary Kennedy can be reached at Mary.Kennedy@dtn.com

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