Federal Government Engagement on Labour Stability on Canada’s West Coast

June 13, 2023

Hon. Seamus O’Regan, P.C., M.P. Minister of Labour
Email: seamus.oregan@labour-travail.gc.ca

Hon. Omar Alghabra, P.C., M.P. Minister of Transport
Email: TC.MinisterofTransport-MinistredesTransports.TC@tc.gc.ca

Re: Federal Government Engagement on Labour Stability on Canada’s West Coast

Dear Ministers:

We are expressing our alarm over the potential for a labour disruption that would affect ports in British Columbia, including the largest port in Canada, the Port of Vancouver and Port of Prince Rupert respectively, to add another shock to our supply chain. The Supply Chain Task Force report noted that “wild swings in supply and demand due to the COVID-19 pandemic, as well as climate shocks (e.g., wildfires, floods) and growing geopolitical uncertainty, have put trade norms and flows at risk.” The potential for a labour dispute adds to an already challenging situation.

The collective agreements between the BCMEA and ILWU Canada on behalf of the Longshore Locals and Local 514 Ship & Dock Foremen expired on March 31, 2023. We understand that either party could be in a position to strike or lock out as early as June 24. Such actions would disrupt west coast ports and have immediate impacts across Canada’s already fragile supply chain in as little as two weeks. A breakdown in port operations would severely impact manufacturing, retail, agriculture, automotive dealers, and energy industries across the country.

On behalf of the Canadian business community, we request the government’s active engagement with this bargaining process and that it be prepared to act to prevent a labour disruption. It is imperative that the federal government work with the parties to secure an affordable, stable, and efficient supply chain.

Canadians and businesses alike require stability in our supply chains. According to the Canadian Chamber’s Business Data Lab, nearly a quarter of businesses have stated that supply chain issues will continue to remain a key obstacle to growth and that they expect these challenges to persist well into next year. A labour disruption will have a significant and immediate impact on the livelihoods of Canadians and the health of Canadian businesses that rely on the safe and efficient flow of Canadian goods.

As Canada’s largest gateway, Canada’s west coast ports handle over $500 million worth of cargo, including agri-foods, perishable goods, potash, critical minerals and household necessities, every day. Approximately sixteen percent of Canada’s total traded goods flow through our west coast terminals. The trade our west coast ports facilitate ensures critical products arrive in Canada and make their way to store shelves and our factories efficiently and affordably. Any work stoppage will damage the Canadian economy, fanning inflation and increasing costs for Canadians. Our exporting industries could face delays in getting their products to market, hampering their ability to earn income and secure global contracts that drive investment and support jobs here at home.

We respect the right to collective bargaining and believe sincerely that the best deals are reached at the table. Government must continue to work closely with all parties to reach an agreement to avoid a work stoppage. Canada’s economy and our supply chains cannot afford another disruption. Government must be prepared to act immediately in the event bargaining breaks down. A functioning, efficient, reliable, and affordable supply chain is critical to Canada’s economy. Combatting inflation, restoring price stability and strengthening our arrangements with countries in desperate need of stable, reliable trading partners require a dependable, predictable port system. Without stability, we will jeopardize the success and livelihoods of Canadians and their businesses and the growth and prosperity of our country and our allies.

Sincerely,