A container ship docks in the Port of Vancouver on November 20, 2021.
Justin Sullivan | Getty Images News | Getty Images
The B.C. Maritime Employers Association said Monday that collective bargaining has not made progress, saying a “change of direction” is needed.
The BCMEA, which represents port owners, said the Canadian Terminals Division of the International Terminals and Warehouses Alliance “appeared to be consolidating their position” rather than committing to a fair deal.
“BCMEA has gone as far as possible on the core issues,” the group said in a statement. “ILWU Canada needs to decide whether to continue this strike with no hope of resolution, or to revise their position substantially so that a fair and a balanced agreement.”
The employer’s comments follow calls for government intervention to create return-to-work legislation.
Asked whether the administration was considering such a step, the Labor secretary’s office told CNBC: “We’re not going beyond the negotiating table because that’s where the best deals are made. Federal mediators continue to support the parties’ positions .”negotiation”.
The Canadian Parliament is not currently in session and must be recalled, which will take days. While remote voting is possible, a certain quorum is required in the room for voting to take place.
ILWU Canada President Rob Ashton had not responded to CNBC’s request for comment by press time.
The union’s U.S. West Coast chapter supported the strike by its Canadian counterparts. President Willie Adams traveled to meet with Ashton on Monday.Photo of ILWU, Canada facebook page The meeting was recorded.
A total of 24 vessels are transporting containers for the Ports of Vancouver and Prince Rupert, according to vessel data aggregated by MarineTraffic. The total value of the 181,458 containers drifting from the ports of Vancouver and Prince Rupert came to $12 billion, based on a value of $65,225 per container and Canadian customs data.
The ILWU Canada strike began Saturday. The union that supports West Coast ports such as Vancouver and Prince Rupert voted in favor of the strike last month with more than 99 percent of its membership. A strike notice was issued on Wednesday.
In a Facebook Live comment Sunday night, ILWU Canada President Rob Ashton made the case for fair wages and why the union is willing to stay at the table to negotiate.
“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 a post. “We still hope to reach a settlement through free collective bargaining! “
Ashton added that the union had been willing to negotiate with the BCMEA since February and stood ready to proceed with the contract.
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.
Industry followers warn that strikes at Western ports around the holidays could hit the U.S. economy. The Ports of Vancouver and Prince Rupert are popular destinations for U.S. trade, especially cargo from Asia. Some logistics managers told CNBC that rail service from those ports is much faster than rail service via Seattle or Tacoma, Washington.
The International Longshoremen’s Association said Diverted shipments will not be accepted From the ports where the workers went on strike.The president of the International Terminal and Warehouse Federation, which represents port workers on the U.S. West Coast, issued a statement 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 create backlogs and lead to delays in terminal pickups, which in turn lead to late fees that are often passed on to consumers — similar to what happened during the pandemic.
“ITS Logistics significantly increases truck capacity on all Chicago area rail ramps to get as many containers out as possible before strike creates container congestion.” ITS Logistics. “The strikes are artificially creating container backups, creating congestion once containers are processed through ports.”
Canadian ports handle approximately $225 billion in cargo annually, including items such as household goods, electronics and clothing that travel by rail. 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: China, Canadian Pacific Airlines 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 help keep all parties on the table. The strike comes at the start of peak season, when holiday and back-to-school merchandise is about to stock up.