Canpotex on July 19 reported that it is withdrawing all offers for new sales following the resumption of strike activity by the International Longshore and Warehouse Union (ILWU) Canada at the Port of Vancouver and the continued loss of export capacity at Neptune Terminals, which handles approximately 70% of all Canpotex potash exports.
ILWU dockworkers returned to the picket line late on July 18 after a tentative deal was rejected by union leadership (GM July 14, p. 1). Canpotex stressed that it will not make any new offers “until there is greater clarity on supply chain predictability through the Port of Vancouver.”
Nutrien Ltd. also confirmed this week that it is curtailing production at its Rocanville potash mine in Saskatchewan due to the strike, Bloomberg reported on July 19. Nutrien spokesman BJ Arnold told Bloomberg the company will focus on “capital projects and site maintenance” at Rocanville while production is down.
“We urge the parties and the federal government to take immediate action to resolve this strike before further damage is done to Canada’s reputation as a reliable, global potash supplier,” Arnold said by email.
The news follows Nutrien’s announcement on July 11 that it was curtailing production at its Cory mine in response to the strike. According to Nutrien’s 2022 Fact Book, Rocanville is the largest of Nutrien’s six potash mines in Saskatchewan, with a nameplate capacity of 6.5 million mt/y and a 2022 operational capability of 5.2 million mt/y. Cory’s nameplate capacity is 3 million mt/y with an operational capability of 2.1 million mt/y in 2022.
A tentative agreement was reached on July 13 between the British Columbia Maritime Employers Association (BCMEA) and the ILWU, which represents roughly 7,400 dockworkers who walked off the job on July 1 (GM July 7, p. 1). The BCMEA ratified the agreement on July 13 and issued a statement saying the ports of Vancouver and Prince Rupert would reopen “as soon as possible.”
The agreement, which was reached with the help of a federal mediator, was applauded by industry and ag groups, including Fertilizer Canada, which issued a statement on July 14 saying it appreciated the efforts of the federal government and Labor Minister Seamus O’Regan “to end the strike and get goods flowing through the West Coast.”
Hopes for a quick resolution and a return to normal operations were dashed on July 18, however, when the ILWU announced that its Longshore Caucus had voted down the recommended terms of settlement before putting them to a full member vote, and that its Longshore Division would be back on the picket line later that day. The ILWU said the terms were not sufficient to “protect our jobs” into the future.
“Our position since day one has been to protect our jurisdiction and this position has not changed,” the ILWU said in a July 18 statement. With the record profits that the BCMEA’s member companies have earned over the last few years, the employers have not addressed the cost-of-living issues that our workers have faced over the last couple of years, as all workers have. The term of the collective agreement that was given with today’s uncertain times is far too long. We must be able to readdress the uncertainty in the world’s financial markets for our members.”
Shortly after returning to the picket line on July 18, however, ILWU workers were back on the job on July 19 after the Canada Industrial Relations Board declared the resumed strike “illegal,” citing the lack of a 72-hour strike notice. The ILWU then issued a strike notice saying workers would return to the picket line at 9 a.m. on July 22, but rescinded the notice later on July 19.
No new strike notice was issued on July 20, leaving some to conclude that the ILWU and BCMEA were back at the negotiating table. Later that day, news reports said that a second tentative deal had been reached.
The Greater Vancouver Board of Trade this week estimated the strike’s current cost at C$10 billion, with backlogs that could take months to clear. Green Markets Research Director Alexis Maxwell said the impact of the strike could cause potash segment shipments to fall 33% in 3Q from a year ago.