Canada Orders Binding Arbitration to Reopen BC and Montreal Ports

 

Canada’s federal government stepped in on Tuesday, November 12, imposing final and binding arbitration for the labor disputes that stopped work at ports along the West Coast in British Columbia as well as in Montreal. The move came as pressure had been building on the government as commerce groups and business leaders predicted a wide-ranging impact on the economy.

“Thousands of Canadian jobs, our economy, and our reputation as a reliable trading partner,” Steven MacKinnon, Canada Labour Minister, said were being significantly impacted by the lockouts in Canada’s largest ports. He recognized that collective bargaining negotiations were at an impasse saying the impacts are being felt by all Canadians. “We simply cannot afford this uncertainty and instability at this moment.”

MacKinnon highlighted that C$1.3 billion (US$930 million) in goods was being affected each day. Containerships were waiting offshore along with bulkers with only grain terminals remaining open at ports ranging from Vancouver and Prince Rupert on the Pacific to Montreal in the east.

Yesterday the minister issued a statement urging the employers and unions to resume talks after talks broke down in BC on Saturday and union members nearly universally voted down the proposal in Montreal on Sunday. He said “Canadians are counting on them,” and that both sides “must understand the urgency of the situation.”

On the West Coast, the BC Maritime Employers Association locked out 700 foremen on November 4. The union called it an overreaction saying the strike was only a refusal for overtime but the employers said it created a level of uncertainty and could easily escalate. In the East, the Maritime Employers Association set a deadline on Sunday after presenting what it called its final offer after two container terminals had already been closed by a strike. They locked out 1,200 union dockworkers starting on Monday.

“I have invoked my authorities under the Canada Labour Code to secure industrial peace and protect the interests of all Canadians.” Said MacKinnon. He directed the Canada Industrial Relations Board (CIRB) to order a resumption of operations and assist by imposing final and binding arbitration.

For the workers in Montreal, it is the second time in recent disputes the federal government has stepped in to impose the settlement. The union blamed the current two-year dispute on the failure to resolve issues of work-life balance in the prior arbitration. Last year, the government stopped short of imposing arbitration but pressured a settlement in a 13-day walkout by dockworkers in British Columbia.

Many experts had said the employers’ stance and the move to lockouts in the current disputes was pressuring the government to act. The federal government has repeatedly said it preferred collective bargaining but in August it had stepped in to settle strikes at Canada’s two large, national railroads.

The Maritime Employers Association responded today issuing a statement saying it welcomed the intervention. It said it was waiting for instructions from CIRB. On the West Coast, the BCMEA issued a statement saying it "intends to follow direction received from the CIRB."

The ports are expected to resume operations within days.