By Leo Ryan, Editor
In a major move welcomed by business interests but assailed by union circles, Labour Minister Steven MacKinnon announced today he was sending prolonged labour disputes at British Columbia ports and the ports of Montreal and Quebec – all currently impacted by lockouts – to binding arbitration after they reached “a total impasse.”
“I have directed the Canada Industrial Relations Board (CIRB) to order that all operations and duties at the ports resume and to assist the parties to settle their collective agreements by imposing final and binding arbitration,” Mr. MacKinnon said at a press conference in Ottawa.
“The threat to our national interest and the economic well being of Canadians is too great,” he said. “Canadians expect the parties to negotiate fair agreements and to do so quickly. This was not the case here.”
The minister affirmed his decision will bring “the necessary resolutions for both workers and employers.” He also indicated that the terms of existing collective agreements will be extended until new collective agreements can be struck.
Mr. MacKinnon said he expects his decision to invoke binding arbitration will be controversial and he “welcomes that debate.”
Earlier this year, in August, the federal government also chose the CIRB option to terminate a work stoppage at Canada-s two national railways, CN and CPKC.
Some 730 foremen at container terminals in Vancouver and Prince Rupert have been locked out since November 4 in a dispute dominated by terminal automation issues. The West Coast ports move $800 million of cargo daily.
About 1,200 longshoremen in Montreal were locked out late Sunday after they overwhelmingly rejected the “comprehensive final offer” of the Maritime Employers Association (MEA). The existing collective agreement expired on December 31, 2023.
For more than two years replacement workers in Quebec have been performing the tasks of locked out dockers. “Replacement workers have been used during the lockout, so the relationship between the parties and industrial peace is further eroded with each passing day,” Mr. MacKinnon said.
Union, ports and industry reaction
In a statement, NDP Leader Jagmeet Singh accused Prime Minister Justin Trudeau’s government of “overriding union rights.”
“Justin Trudeau is again making it clear to the ports CEOs and all big corporations — being a bad boss pays off. “The Liberal government will always cave to corporate greed, and always step in to make sure the unions have no power … We believe the only place to get a fair deal is at the bargaining table.”
In Montreal, Patrick Gloutney, President of the CUPE 375 union accused the federal government of “flouting the rights of workers to please the employer parties. Slowly but surely our rights to negotiate working conditions are being removed.”
Both the MEA and the British Columbia Maritime Employers Association pledged to following directions from the CIRB and to resume port operations as quickly as possible.
This process is expected to take several days.
The Port of Montreal stated “It will take several weeks to clear terminal backlogs and restore cargo-handling fluidity in the supply chain.”
“Restoring services will allow us to resume international trade, benefiting thousands of businesses and consumers who rely on reliable and smooth port activities,” said Julie Gascon, President and CEO of the Montreal Port Authority.
The Canadian Federation of Independent Business (CFIB) issued a statement Tuesday saying it was “relieved” by Mr. MacKinnon’s decision. “But it shouldn’t have come to this point, and we need to find better ways to solve labour disputes. We cannot have work stoppages paralyze Canada’s supply chains every time negotiations are at an impasse.”
The Greater Vancouver Board of Trade’s President and CEO, Bridgitte Anderson, declared: “Businesses across Greater Vancouver and Canada are relieved to see our ports and supply chains returning to normal. The economic toll of the fourth major disruption to our supply chains has been severe. As of this morning, our Port Shutdown Calculator estimated $6.1 billion of trade was disrupted in B.C. ports alone, with impacts rippling across key sectors nationwide – including manufacturing, retail, critical minerals and other essential services Canadians rely on. We call on all parties to expedite a return to normal operations to allow goods to flow and to stop further economic harm.”
“Given the shifting dynamics of global trade, it is clear a new ‘Team Canada’ approach is required,” stressed Ms Anderson. “We need stability in our supply chains to drive economic growth and create well-paying jobs. We urge the federal government and the Industrial Inquiry Commission to examine the underlying structural issues behind these disruptions, evaluate the far-reaching economic harm that disruptions cause, and identify innovative tools to provide lasting certainty for our supply chains and the public interest.”
(photos of ports of Vancouver and Montreal)
