Canadian longshore workers set to strike July 1

The International Longshore and Warehouse Union's (ILWU) Canadian division this week issued a strike notice effective July 1 after months of negotiations with the British Columbia Maritime Employers Association (BCMEA).

More than 99% of union members voted to strike during a vote held earlier this month. Negotiations have been ongoing since February 2023; the previous contract expired March 31.

BCMEA represents 49 ship owners and agents, stevedores and container/breakbulk terminal operators primarily based at the ports of Vancouver and Prince Rupert. ILWU Canada represents more than 7,200 workers.

The union is seeking a deal that ends contracting out longshore jobs, halts port automation that replaces jobs and provides better benefits to combat the rising cost of living, ILWU Canada President Rob Ashton said in the 72-hour strike notice issued June 28.

"Unfortunately, the ILWU Canada Bargaining Committee has run out [of] options at the bargaining table because the BCMEA and their member employers have refused to negotiate on the main issues, and we feel we are left with no choice but to take the next step in the process," Ashton said.

Two mediators appointed by the Canadian government have been overseeing the negotiations. The BCMEA has agreed to voluntarily enter a mediation-arbitration process, but ILWU Canada declined the proposal, according to a BCMEA press release.

About 90% of cargo moving through the Port of Vancouver is Canadian trade, CNBC reported. But 15% of container trade there is from or destined to the United States, while 2% of U.S. international full imports move through Vancouver. About two-thirds of containerized imports at the Port of Prince Rupert travels to the U.S. market via rail.

Canadian Pacific Kansas City, CN and BNSF Railway Co. serve the ports. Earlier, this week, CPKC issued a customer advisory that warned clients port operations could be impacted.

"At this time, we do not anticipate any significant service interruptions to result from this work stoppage, and as such, CPKC has not initiated embargoes related to a potential service interruption, but we are closely monitoring developments to evaluate any impact to shipments on CPKC’s network," railroad officials said in the advisory.

The strike also could affect U.S. port operations, said American Trucking Associations President and CEO Chris Spear.

"ILWU Canada’s announcement of an imminent labor strike is unwelcome news for the U.S. economy as the global supply chain enters peak shipping season," he said.

The Railway Association of Canada has asked top government officials to step in, including Canadian Minister of Labor and Member of Parliament Seamus O'Regan Jr.

"Canada's railways have asked [O'Regan] to use every tool at his disposal to prevent any work stoppage and avoid the economic harm such a stoppage would cause," RAC tweeted.