Warning! Canadian dock workers have once again issued a strike threat

Column:Industry dynamics Time:2023-08-02
According to Bloomberg's latest report, dockworkers on the west coast of Canada have rejected a proposed mediation agreement submitted by the federal government, raising the possibility of another labor interruption...

According to Bloomberg's latest report, dockworkers on the west coast of Canada have rejected a proposed mediation agreement submitted by the federal government, raising the possibility of another labor interruption at the country's busiest port. This means that since July 1st, there has been a daily backlog of 700 million yuan of goods at the dock during the strike, which continues to be cleared and transported by no one.

According to a statement from the British Columbia Maritime Employers Association (BCMEA) last Friday evening, members of the International Union of Docks and Warehouses (ILWU) have rejected an agreement to increase wages by 19.2% within four years. The union leadership suggested that its members vote in favor of the strike.

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Rob Ashton, the chairman of a branch of the International Coast and Warehousing Union (ILWU) in Canada, stated that striking workers are demanding that employers return directly to the negotiating table for negotiations, rather than engaging in indirect dialogue through the Maritime Employers Association (BCMEA).

BCMEA issued a statement expressing disappointment at the rejection of the temporary agreement, stating that it is a good contract that recognizes the skills and efforts of dock workers and provides stability and certainty for the future development of Canadian West Coast docks. The statement also pointed out that ILWU's failure to approve a fair agreement poses risks to Canada's business and the entire supply chain system, further harming the affordability of Canadians and increasing their cost of living. BCMEA stated that they are waiting for instructions from the federal government on the next steps of action.
In early July, over 7000 dock workers went on strike for 13 days, seriously affecting trade between Vancouver Port, Canada's busiest shipping hub, and Prince Rupert Port in British Columbia.
Earlier this month, the Canadian Prime Minister Trudeau's government dispatched a mediator to negotiate an agreement. One option for the government is to recall the current summer vacation parliament and pass legislation ordering workers to continue working.
Dock workers can now strike again with 72 hours prior notice. BCMEA stated, "Unfortunately, ILWU's refusal has once again put Canadian businesses and all those who rely on stable and well functioning supply chains in a difficult situation."
According to data from the Vancouver Trade Commission, the strike earlier this month resulted in over 10 billion Canadian dollars ($7.6 billion) in cargo losses.