On July 18, when the outside world believed that the 13-day Canadian West Coast port workers' strike could finally be resolved under the consensus reached by both employers and employees, the trade union announced on the afternoon of the 18th that it would reject the terms of the settlement and resume the strike. The closure of port terminals again may lead to more supply chain disruptions.
The head of the union, the International Docks and Warehouses Federation of Canada, announced that its caucus believes the terms of the settlement proposed by federal mediators do not protect workers' current or future jobs. The union has criticized management for failing to address the cost of living faced by workers over the past few years despite record profits.
At the same time, the trade unions claim that management must be able to re-address the uncertainties of world financial markets for their members.
The British Columbia Maritime Employers Association, which represents the management, accused the leadership of the union caucus of rejecting the settlement agreement before all union members voted, and said that the union's actions were harmful to the Canadian economy, international reputation and livelihood and further harm to Canadians who depend on stabilizing supply chains. The association said the four-year agreement promised wage and benefit increases of about 10 percent over the past three years.
About 7,400 workers in more than 30 ports in British Columbia, Canada, located on the Pacific coast, have gone on strike since July 1, Canada Day. The key conflicts between labor and management are wages, outsourcing of maintenance work, and port automation. The Port of Vancouver, Canada's largest and busiest port, is also directly affected by the strike. On July 13, the labor and management announced their acceptance of the mediation plan before the deadline set by the federal mediator for the negotiation of the terms of the settlement, reaching a provisional agreement and agreeing to resume normal operations at the port as soon as possible.
Some chambers of commerce in B.C. and Greater Vancouver have expressed dismay at the union's resumption of strikes. During the previous strike, a number of chambers of commerce and the governor of Alberta, an inland province adjacent to British Columbia, called on the Canadian federal government to intervene to end the strike through legislation.
The Greater Vancouver Board of Trade has said this is the longest ongoing port strike the agency has encountered in nearly 40 years. The trade impact of the previous 13-day strike was estimated at about C$10 billion.
In addition, the strike of longshoremen on the west coast of Canada led to increased congestion on the west coast of the United States. With the "help" of reduced shipping capacity and peak season demand, the trans-Pacific freight rate has a strong momentum of upward adjustment on August 1. The disruption caused by the re-closure of Canadian ports may play a certain role in maintaining the increase in freight rates on the US line.
Every time there is a strike, it will definitely extend the delivery time of the consignor. Senghor Logistics reminds again that freight forwarders and consignors who have recently shipped to Canada, please pay attention to the delay and impact of the strike on the transportation of goods in time!
Post time: Jul-19-2023
