The union representing port workers in western Canada is officially on strike, an action that could have ripple effects beyond the U.S. northern neighbor.
International Docks and Warehouses Federation’s Canadian Docks Division Announces Strike saturday facebook post Signed by union president Rob Ashton. More than 99 percent of union members who support West Coast ports such as Vancouver and Prince Rupert voted in favor of the strike last month. A strike notice was issued on Wednesday.
“ILWU Canadian Docks did not take this decision lightly, but it is a step we must take for the future of our workforce,” Ashton said in the post. “We still hope to reach a settlement through free collective bargaining!”
Ashton added that the union has been willing to negotiate with the British Columbia Maritime Employers Association, which represents the port owners, since February and stands ready to proceed with the contract.
employers’ associations, known as BCMEA, said in a statement It is committed to “presenting proposals and positions in good faith with a view to reaching a fair agreement at the negotiating table”. It pointed to the role of a federal mediator and said it was open to “any” solution that would allow the parties to reach a balanced agreement, including a mediation-arbitration process.
Cruise ships are still sailing, bulk grain is still moving, but containerized grain is not. Canadian Labor Minister Seamus O’Regan Jr. tweet appeared to support continued negotiations between the two blocs, noting that “the best deal for both parties is struck at the negotiating table”.
The two parties are divided on issues such as automation, the use of contract labor and the cost of living for workers. Two mediators appointed by the Canadian government oversaw discussions throughout late May. These discussions were followed by a so-called cooling-off period between the two groups.
Strikes at western ports around the U.S. and Canadian holidays could have an impact on the U.S. economy, industry sources said. The Ports of Vancouver and Prince Rupert are popular destinations for U.S. trade, as the ports are among the main ports of call for cargo from Asia. Some logistics managers told CNBC that rail service from these ports is much faster than going through the ports of Seattle or Tacoma.
The International Longshoremen’s Association said Diverted shipments will not be accepted The president of the International Terminal and Warehouse Federation, which represents port workers on the U.S. West Coast, said, statement of solidarity Working with Canadian unions, but no specific action was mentioned.
The strike could cause congestion at those ports, preventing dockers from unloading cargo. Congestion can lead to backlogs and lead to delays in terminal pickups, resulting in late fees that are often passed on to consumers — a situation similar to what happened during the pandemic.
“Container traffic was lower than normal due to the Canadian holidays and National Day holidays, but ships are now on strike because of the strike,” said Paul Brashire, vice president of haulage and intermodal for ITS Logistics. “If the strike continues until the middle of next week, it will Congestion affecting rail terminals in Chicago and Detroit for weeks to come as large numbers of containers will accumulate and eventually be diverted to these rail terminals.”
It is estimated that Canadian ports handle nearly $225 billion in cargo annually, with goods moving by rail in industries such as household goods, electronics and apparel. About 15 percent of consumer trade through the Port of Vancouver is to or from the United States, according to the Port Authority. About two-thirds of containerized imports bound for Prince Rupert go to the United States, port data show.
Three Class I railways operate at these ports: CN, Canadian Pacific Airlines BNSF, its subsidiaries Berkshire Hathaway. In an email to CNBC, BNSF said it has no comment on the impact of the strike. CN could not immediately be reached for comment.
In a CPKC customer advisory issued Wednesday, the railroad said: “The shutdown associated with this notice may impact British Columbia port operations. An embargo has been initiated in connection with potential service disruptions, but we are monitoring developments closely to assess any impact on shipments across the CPKC network. We will provide updates as needed.”
Steve Lamar, chief executive of the American Apparel and Footwear Association, told CNBC that a “fragile and recovering supply chain cannot tolerate a strike,” while urging the Canadian government to help keep parties on the table.