Recently, the negotiation of labor disputes in several ports in western and eastern Canada has reached an impasse, and the operation of the ports has been seriously affected. To this end, the Canadian federal government officially intervened on the 12th, requiring labor and management to accept binding arbitration in order to restore the normal operation of the port.
Canada's Federal Minister of Labor and Senior Citizens Affairs McKinnon said in a statement in Ottawa that labor negotiations at ports in British Columbia (B.C.), Montreal and Quebec have all come to a standstill. He emphasized that the current port shutdowns are having a major impact on Canada's supply chain, job market, overall economy, and international trade reputation. In particular, the work stoppages at ports in British Columbia and Montreal have already had a wide-ranging impact on the country's economic activity.
In response to the Port of Quebec, McKinnon noted that the labor dispute has been going on for more than two years and there is still no hope of a resolution. In an effort to break the impasse, McKinnon has directed the Canada Labour Relations Board to order the resumption of all operations and functions at the port and to pursue final and binding arbitration to assist the parties in resolving their differences, in accordance with the provisions of the Labour Code. At the same time, he asked for an extension of the validity of the existing collective agreement until a new one could be reached.
The government's intervention comes against the backdrop of a work stoppage adopted by the Maritime Employers' Association of British Columbia on Nov. 4 after receiving notice of a union strike to turn away unionized workers. This action affected dockworkers at BC ports, including the Port of Vancouver, Canada's largest port. The Port of Montreal, Canada's second-largest port with an average daily cargo value of nearly $400 million, was also affected by the labor dispute. on Nov. 10, the union representing about 1,200 dockworkers at the Port of Montreal overwhelmingly rejected an offer made by the Maritime Employers Association, which was followed by a lockout as well.
The Maritime Employers' Association of British Columbia said they will follow subsequent instructions from the Canadian Industrial Relations Board. The association emphasized that West Coast ports move more than $800 million worth of goods per day and are vital to the country's supply chain, economic trade and people's livelihoods. However, local unions have expressed dissatisfaction with the government's involvement and plan to fight the government's order and the arbitration-mandated contract through legal channels.
Looking back in history, B.C. had a port strike last July that lasted more than 10 days and affected about C$10.7 billion in trade. It was the longest-running port strike there in nearly 40 years. Ultimately, the dispute was resolved only after the government asked the Labor Relations Board to intervene.
This intervention by the Canadian government was aimed at quickly resolving the labor dispute and restoring normal operations at the port through mandatory arbitration. However, the opposition of the labor unions suggests that the resolution of this issue will take some time. It remains to be seen whether a new agreement can be reached between labor and management under the framework of arbitration.
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