Canada's government about to intervene in dockworker dispute to keep ports open

By Nick Lung. Photo:Engin Akyurt
Canada's federal government is preparing to intervene in a labor dispute on July 29 to ensure Canada's busiest port remains open after dockworkers rejected a mediation agreement for the second time in July.
The Canadian Industrial Relations Board determined whether the longshoremen union's rejection of the deal eliminated the possibility of a negotiated settlement. If so, the government could impose a new collective agreement or eventual binding arbitration on the parties. "The government is prepared for all options and scenarios." "Canada's economy cannot afford to face further damage from this dispute."
The unrest began on July 1, when more than 7,000 dockworkers went on strike for 13 days, severely disrupting the flow of trade in the Port of Vancouver, Canada's busiest maritime hub, and Port of Prince Rupert, British Columbia. With pulp mills shuttered, mines curtailed and the cost of goods soaring for thousands of companies, the shutdown stymied an estimated $10 billion worth of freight, prompting Prime Minister Justin Trudeau to send a mediator to negotiate a deal. reach a settlement. Transaction complete.
A preliminary agreement was first reached on July 13 but was rejected by the caucus of the International Federation of Terminals and Warehouses. Although dockers eventually returned to work later on July 28, union members voted against the agreement, raising the prospect of another shutdown as they can strike again with 72 hours' notice. "We call on our direct employers to come to the negotiating table and negotiate something that will benefit our members and the industry," the union president said.
Business groups including the regional trade council and the country's largest association of small and medium enterprises have lashed out at unions, saying it is time for the government to intervene to ensure the port remains open. "The federal government must do what is best for the country, our entrepreneurs and the economy," the Canadian Federation of Independent Business said.
Managing global supply chains, whether as a logistics provider or as a beneficial owner of goods, is complex, and supply chains do not belong in the category of light switches that you can simply turn on and off. Historical volumes show that volumes moving through the USWC (United States West Coast) have eroded due to fears of cargo being held up and/or diverted. Labor tensions on the West Coast over the past year have caused many shippers to shift business. to east coast ports. Once changed, not everyone returns.
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