Ports on Canada’s east and west coasts are facing a turbulent period after ongoing labor disputes locked out almost 2,000 workers during the first week of November.

On the west coast, the British Columbia Maritime Employers Association (BCMEA) locked out over 700 foremen at ports across British Columbia on November 4, as they discussed the terms of a new contract. The International Longshore and Warehouse Union Local 514 claims that "employers are behaving irresponsibly by threatening to remove previously agreed-upon conditions from the old contract."

West Coast strikes alone are already costing the Canadian economy around C$800 million ($540 million) per day.

The BCMEA offered a 19.2% wage increase over four years; however, the union rejected the offer, claiming U.S. dockworkers recently negotiated a significant pay increase of 62% over a six-year period.

The union's primary concern, however, lies in the potential impact of automation on job security and working conditions.

East Coast Strikes

On November 11, at the Port of Montreal, 1,200 longshore workers were locked out by the Maritime Employers Association (MEA) after the Longshoremen's Union rejected an offer that included a 20% pay raise over six years. The union claimed this was too low compared to what U.S. dockworkers recently negotiated.

Government Reacts

Federal Labor Minister Steven MacKinnon has expressed concern over the slow pace of negotiations on both coasts. While the government supports negotiations, it has urged both parties to prioritize a swift resolution to minimize economic damage.

The ongoing labor disputes are poised to have a significant economic impact. Imminent supply chain disruptions include backlogs of goods, increased shipping costs, and potential shortages of essential items. Businesses will face higher operational costs, delayed shipments, and potential closures. Consumers can expect higher prices for goods, limited product availability, and delays in deliveries.

Global logistics company Hapag-Lloyd put out an announcement saying that all container operations at the major ports of Montreal, Vancouver, and Prince Rupert are currently suspended.

"Given the uncertainty of this situation, which is beyond our control, we may need to adjust our services as conditions evolve. Our priority remains the protection of your cargo during this period," the company said, asking customers to "please note that this is a fluid situation, and the impact on our operations is subject to change without notice."