Canada Orders Ports to Restart as Labor Disputes Choke Trade
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Prime Minister Justin Trudeau’s government directed an independent labor board to end lockouts at Canada’s largest ports, as it did with railways in August, to stop an economic disruption in the country.
Labor Minister Steven MacKinnon announced that he has invoked his authority under the Canada Labor Code and forced the matter to the Canada Industrial Relations Board, requesting it to order the sides to go back to work, resume operations and enter into an arbitration process to resolve the dispute.
The use of this measure is highly unusual, and could further damage the Liberal government’s relations with labor groups.
Dock foremen at British Columbia ports have been locked out for more than a week. Montreal port employers did the same on Nov. 10 after their 1,200 unionized employees rejected a contract offer that included pay increases of about 20% over six years. That would have provided average annual compensation of more than C$200,000 ($143,330) by the end of the contract.
“These work stoppages are impacting our supply chain, hundreds of thousands of Canadian jobs, our economy and our reputation,” MacKinnon said at a news conference Nov. 12. He justified his decision by saying the negotiations had reached a “total impasse” and there was “no perspective, no possibility realistically” of agreements being reached after more than a year of negotiations.
“Canadians have limited tolerance right now for economic self-harm,” he said. More than C$1.2 billion in goods handled every day in those ports have been disrupted, snarling supply chains.
The Maritime Employers Association, the group representing companies operating the Montreal port terminals, said in a news release that it is waiting for next steps from the CIRB, and that it will do what’s necessary to quickly restart activities.
The representative for the Montreal Longshoremen’s Union, Patrick Gloutney, called Nov. 12 a “dark day for workers’ rights.” “We must collectively wake up and denounce this step back for the rights of the middle class,” he said in a statement.
Our Nat'l President, François Laporte, Speaks to ITF Congress:
“Canadians have a constitutional right to strike and engage in collective bargaining. Yet, government intervention undermines these rights, allowing employers to trample on them and bargain in bad faith.”
..1/2 🧵 pic.twitter.com/CvHAuLr2KY — Teamsters Canada (@TeamstersCanada) October 17, 2024
The union representing the railway workers, the Teamsters Canada Rail Conference, has challenged in court the government’s ordering of the labor board to stop the railway disputes, arguing it set a dangerous precedent by violating workers’ constitutional rights.
“We maintain that this decision is made under powers that are granted to me by the Parliament of Canada, and we will defend those actions vigorously in court,” MacKinnon said.
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