Canadian Labor Minister Steven MacKinnon has exercised federal powers to end the strikes at Vancouver, Prince Rupert, and Montreal ports. He has ordered binding arbitration between the unions and port authorities, bringing an end to disruptions that affected the major trade partner of the northern United States.
The strikes at Vancouver and Prince Rupert began earlier this month, with Montreal port workers also facing exclusion by port management recently. The labor disputes caused significant delays in supply chains, affecting container shipments to Canadian and American companies. The Retail Council of Canada highlighted the severe disruption to retail supply chains during an already busy period, noting that recovery could take weeks. However, Canadians are assured of continued availability of essential retail goods.
Trade with the U.S. will also take time to normalize. About 20% of U.S. trade passes through Vancouver and Prince Rupert ports, leading to strikes after union leaders and industry representatives couldn't agree during a cooling-off period. According to the U.S. Department of Transportation, rail cross-border trade between Canada and the U.S. represented 14% of the bilateral trade total of $382.4 billion in the year's first half. Daily, approximately $572 million in container trade travels from Canada to the U.S., as per the U.S. Census Bureau.
Stephen Lamar, CEO of the American Apparel & Footwear Association, expressed relief that Canada's three busiest ports would resume operations and hoped for a lasting beneficial agreement. He noted that the port closures led to rerouted ships and resulted in congestion and delays throughout North America. The impact on the transportation network could have been worse given Canada's rail capacity reduction due to mandatory winter train length safety limits and the U.S. West Coast's two-year rail dwell times.
In a press briefing, MacKinnon stated that negotiations had reached a "complete stalemate," necessitating action to prevent any economic or reputational harm to Canada. He emphasized that continued work stoppages would exacerbate the impacts, threatening Canada's dependable reputation, with over $1.3 billion in goods affected daily due to the deadlock.
This is MacKinnon's second intervention in recent months to avert a strike. Under Section 107 of Canada's labor laws, the Labor Minister can order binding arbitration to resolve labor disputes. In August, he referred a strike involving Canadian Pacific Kansas City and Canadian National Railway to the Canadian Industrial Relations Board, successfully ending the strike.
The existing collective agreements will remain in effect until a new agreement is reached between the dockworkers' unions and the ports.
