Starting July 1, a general strike at several west coast ports in Canada!
Recently, according to foreign media reports, the International Longshore and Warehouse Union (ILWU) of Canada issued a formal 72-hour strike notice to the British Columbia Maritime Employers Association (BCMEA). The reason is that the collective bargaining between the two sides has reached an impasse.
General strike at several Canadian ports coming up from July 1
The Canadian ILWU has issued a notice under the Canada Labour Code to plan a strike at the country's west coast ports beginning July 1 as the next step in its aggressive approach to contract negotiations.
The British Columbia Maritime Employers Association (BCMEA) said it has received formal written notice of the 72-hour strike.
The strike is specifically scheduled to begin at 8 a.m. local time on July 1, 2023 at the country's west coast ports, which represents a shutdown at most ports on Canada's west coast.
The main affected ports include the two largest gateways, the Port of Vancouver and Prince Rupert, which are Canada's first and third largest ports, respectively, and gateways to Asia.
It is reported that about 90 percent of Canadian trade goes through the Port of Vancouver, and about 15 percent of U.S. imports and exports are shipped through the Port of Vancouver each year.
And Canada's west coast ports handle nearly $225 billion worth of cargo each year, shipping many consumer goods, from apparel to electronics and household items.
The potential strike action raises questions and concerns about the impact on Canada's supply chain and the flow of goods domestically and internationally.
British Columbia Premier David Eby said, 'There is great concern about the potential impact of the strike on our ports.'
He said costs in B.C. have been rising throughout the epidemic due to inflation and supply chain issues, and a strike could increase costs in a way that residents cannot afford.
However, under Canadian labour laws, grain ships should not be affected by the strike, and BCEMA has said they will continue to provide service to cruise ships, meaning the strike will focus on container ships.
Reason for the strike: Both sides have been unable to reach a new agreement
Free collective bargaining between ILWU Canada and the British Columbia Maritime Employers Association (BCMEA) has been ongoing since February of this year in an attempt to renew an industry-wide collective agreement that expired on March 31, 2023.
However, since the agreement expired, the parties have been unable to reach a new agreement.
The parties had previously been in a cooling-off period, but the period ended on June 21 when union members voted 99.24 percent in favor of strike action this month.
Previous negotiations involved two coastal collective agreements, one with Longshore Locals and the other with Local 514 Ship&Dock Foremen, representing more than 7,400 dockworkers and foremen at Canada's west coast ports.
These agreements cover all aspects of wages, benefits, hours of work and conditions of employment.
BCMEA represents 49 private waterfront employers and operators in British Columbia.
In response to the strike notice, Canadian Labour Minister Seamus O'Regan and Transportation Minister Omar Alghabra issued a joint statement stressing the importance of reaching a negotiated agreement.
'We strongly encourage all parties to return to the bargaining table and work together to reach an agreement. This is the most important thing right now.' The joint statement reads.
BCMEA and ILWU Canada have been working on mediation and conciliation efforts since March 28, 2023, after receiving a notice of dispute filed by ILWU Canada.
BCMEA maintains that it has made several proposals in good faith and is committed to making progress toward a fair agreement.
Despite the ILWU's strike notice, BCMEA has expressed its willingness to continue negotiations through the federal mediation process to find a balanced agreement that will ensure stability at the port and the uninterrupted flow of cargo for Canadians.
On the other hand, the Canadian ILWU said it is seeking a fair agreement to achieve its goals, which include preventing job erosion due to outsourcing, protecting dock workers from port automation and protecting them from high inflation and the rising cost of living.
The union highlighted the contributions of dockworkers during the outbreak and expressed disappointment with BCMEA's demands for concessions.
'BCMEA and its member employers have refused to negotiate on key issues,' ILWU Canada said in its statement.
The union called on BCMEA to drop all concessions and engage in genuine negotiations to end the dispute while respecting the rights and conditions of the dockworkers.
In addition, just weeks before the latest strike action, the ILWU on the U.S. West Coast and the port terminal operators represented by the Pacific Maritime Association reached a preliminary agreement on a new labor contract, ending more than a year of negotiations that have had a significant impact on port terminal operators.
Transportation economist Philip Davies, principal of transportation consulting firm Davies transportation Consulting Inc. in Wingo, said agreements between maritime employers and port workers are usually long-term agreements that involve 'pretty hard bargaining.
If negotiations don't work out, Davies said, the unions have several options other than taking full-scale strike action to disrupt port operations.
'They could disrupt a terminal operation, or they could not send enough labor for a shift.'
'Of course, the employer's response could be to turn the union away and close the terminal, either of which could happen.'
One trade analyst said a potential strike could have serious consequences not only for the Canadian economy, but for the global economy as well.
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