What’s next for Canada’s strike-ridden economic chokepoints?
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Fresh work stoppages at Canada’s largest ports are once again raising concerns over the impact of labor disruptions at critical points in the nation’s infrastructure.
This week, the British Columbia Maritime Employers Association (BCMEA), representing ship owners, stevedores, and terminal operators in the province, locked out about 700 unionized supervisors who had begun strike action, citing the need for a safe and orderly wind-down of operations. In Montreal, a partial strike is affecting approximately 40 per cent of port operations.
These disruptions are the latest in a series of labor disputes in Canada’s transport sector, prompting business groups to call for the federal government to not only end the stoppages but to also establish longer-term measures to prevent future strikes or lockouts at key logistics nodes.
The stakes are high. Ports and railways are crucial for Canada’s trade-reliant economy, and disruptions in these hubs can have far-reaching economic consequences. For instance, a recent parliamentary report estimated that last year’s 13-day strike at British Columbia ports reduced GDP by as much as $980 million and disrupted $10 billion in trade, impacting sectors from auto manufacturing to agricultural exports.
This week, the Canadian Federation of Independent Business urged the government to classify ports as “essential services,” which would bar strikes or lockouts. Others favour more surgical changes. Last month, a coalition of chambers of commerce and industry associations issued an open letter, advocating for “a predictable, reliable, long-term solution” in order to prevent “potential supply chain breakdowns.”
A representative from the Chamber of Marine Commerce, one of the letter’s signatories, highlighted in a Canadian Press story the U.S. emergency board mechanism as a potential model. These boards can temporarily prevent strikes during negotiations, a measure advocates say would protect public interests while allowing fair bargaining.
The federal government will be treading very carefully. A broad designation of essential services, for example, would represent a significant shift in Canada’s labour policy, making it politically sensitive, perhaps almost impossible, to implement. Even lesser structural changes will be viewed with skepticism by the labour movement. At a time of heightened strike activity, it will be hard to make headway. This is particularly true in the current political landscape where all parties are vying for favour with labour unions.
Anthony Giles, an industrial relations expert and adjunct professor at Queen's University, explains that while Canada’s existing mechanisms generally work well, there are periods when simultaneous strikes can significantly impact the economy. “There are times when a cluster of significant strikes gets people really worked up,” Giles told Means & Ways.
At the same time, while labour strikes at economic choke points are not new, the heightened focus on supply chain resilience and affordability in a post-COVID world puts a different light on the issue. There may be diminishing tolerance for major economic disruptions.
Giles, who was appointed by the government to review last year’s B.C. port strike, suggests the broader issues might be explored by an ongoing commission led by arbitrator Vincent Ready. This commission, currently conducting a comprehensive study into the longshoring labour disputes at Canada’s West Coast ports, is expected to present its findings next year.
“This is the other side of the coin, right? Let's look at ways to help the parties improve their bargaining behavior, and maybe not eliminate all work stoppages all the time, but try and bring them under control,” Giles said.
