The Canadian Federation of Independent Business (CFIB) says it is relieved the federal government has finally stepped in and ordered binding arbitration to get the Port of Montreal and BC ports fully operational.
“The Minister of Labour must make decisions for the greater good of the country. Our supply chain needs to be protected, and so do our businesses and their employees. A lengthy work stoppage has harmful consequences for the whole economy that are disproportionate to the benefit any of the parties involved can obtain,” said Jasmin Guenette, Vice-President, National Affairs, CFIB.
“We welcome the Minister’s decision today. But it shouldn’t have come to this point, and we need to find better ways to solve labour disputes. We cannot have work stoppages paralyze Canada’s supply chains every time negotiations are at an impasse. Moving forward, government must make ports an essential service, so they remain fully operational at all times.”
The CFIB is Canada’s largest association of small and medium-sized businesses with 97,000 members across every industry and region.
Here’s the statement from Steve MacKinnon, Minister of Labour and Seniors:
“Collective bargaining negotiations between the parties in the ports of British Columbia, Montreal and Quebec are all at an impasse. The responsibility for these negotiations belongs to the parties alone, but the impacts are being borne by all Canadians. We simply cannot afford this uncertainty and instability at this moment.
“The work stoppages at the ports of British Columbia and the Port of Montreal are significantly impacting our supply chains, thousands of Canadian jobs, our economy, and our reputation as a reliable trading partner.
“The dispute at the Port of Quebec has been dragging on for more than two years without any sign of resolution despite significant mediation support. Replacement workers have been used during the lock-out, so the relationship between the parties and industrial peace is further corroded with every passing day.
“Therefore, I have invoked my authorities under the Canada Labour Code to secure industrial peace and to protect the interests of all Canadians.
“I have directed the Canada Industrial Relations Board to order the resumption of all operations and functions at the ports, and to assist the parties by imposing final and binding arbitration. I have also directed the Board to extend the term of the existing collective agreements until new ones are reached.
“Negotiated agreements are the best way forward, but we must not allow other Canadians to suffer when certain parties do not fulfill their responsibility to reach an agreement. It is my duty and responsibility to act in the interests of businesses, workers, farmers, families and all Canadians.”
According to the federal government, the number of agreements settled by FMCS (Federal mediation and conciliation services)in fiscal year 2023-24 without a work stoppage was 154 (96%); the number of agreements settled by FMCS in fiscal year 2023-24 with a work stoppage was 6 (4%); and the total number of agreements settled in fiscal year 2023-24 was 160.
Retail analyst and author Bruce Winder said he is relieved for retailers and suppliers that the federal government has forced binding arbitration for Canada’s Vancouver and Montreal ports.
“We were losing $1.2 billion in business every day that the ports were shut down. The risks to Canada’s fragile economy were too great. Particularly with a potential Canada Post strike in play this week as well,” he said.
Gary Newbury, a retail supply chain and last mile expert, said the recent rail strike/lock out (Aug 24) was quelled by the federal government forcing both parties into binding arbitration, and similarly now, the ports have been forced to resume work under the same legislative conditions.
“Canada’s reputation as a reliable trading partner is not enhanced by these “fall outs” arising from management and unions using monopolistic/duopolistic supply chain infrastructure assets as betting chips in their agendas,” he said.
“I would go further and suggest the opportunity that may arise mid Jan 25, our ports need to be ready to handle a sharp rise in activity as the Gulf/Eastern American ports head into a more substantial dispute deferred from October.
“The federal government having recognized the critical nature of our supply chains operating efficiently during the pandemic, have chosen not to recognize our ports, ferries, bridges or railways as “Essential Services” and brought into place legislation to ensure minimum service standards are maintained during periods of disputes.
“While in peak trading for Canadian retailers (and their increasingly extending promotional events such as Black Friday), the use of binding arbitration/return to work is a short-term tool the Minister for Labour can use. A far more proactive approach would be to reclassify such infrastructure to ease pressures within Canadian employers dependent free flowing supply of product for their survival, and for consumers to ensure their lives are not avoidably disrupted.”
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