Dockworkers with the International Longshore and Warehouse Union (ILWU) Canada voted on Aug. 3-4 to ratify a deal reached with the B.C. Maritime Employers Association (BCMEA), ending a weeks-long labor dispute that crippled port operations at Vancouver and Prince Rupert, B.C.
Nearly 75% of the roughly 7,400 striking union members voted in favor of the new contract, which was negotiated with the help of the Canada Industrial Relations Board (CIRB), ILWU President Rob Ashton said in a statement on the union’s Facebook page late on Aug. 4. The BCMEA has also ratified the deal.
“As we move forward to implement the terms of the agreement, we are committed to working collaboratively with our labor partners, the federal government, and key stakeholders to rebuild the reputation of Canada’s largest gateway,” BCMEA said in an Aug. 4 news release.
The vote happened a week after ILWU Canada’s voting membership rejected an earlier four-year tentative agreement that was proposed by a senior federal mediator and recommended for ratification by the ILWU Bargaining Committee and their Longshore Caucus (GM July 28, p. 1).
The CIRB on Aug. 7 released the terms of the new four-year contract, which includes general wage increase of 5% annually for the next two years and 4% for the remaining two years, boosting hourly wages to a base rate of C$57.51 by 2026. The contract also increases the “Modernization and Mechanization retirement lump sum” payout to C$96,250 in 2026 for eligible retirees, over and above normal pension entitlements.
In addition, the deal includes a commitment by employers to train workers to perform maintenance on new equipment instead of contracting out maintenance work to third parties.
“This is good news for the employer, the union, and the many workers and businesses across Canada that rely on our B.C. ports,” said Federal Labor Minister Seamus O’Regan and Transport Minister Pablo Rodriguez in a joint social media statement on Aug. 4.
The strike, which shut down port operations from July 1-13 (GM July 7, p. 1) before workers returned to their jobs while negotiations continued, disrupted the movement of an estimated C$10.7 billion in cargo, according to the Greater Vancouver Board of Trade.
The walkout hit the fertilizer industry hard, with Canpotex withdrawing all offers for new potash sales on July 19 (GM July 21, p. 1) and Nutrien Ltd. curtailing production at both its Rocanville and Cory mines in Saskatchewan (GM July 14, p. 1). Canadian Pacific Kansas City Ltd. (CPKC) and Canadian National Railway Co. both reduced movement of railcars to West Coast ports.
Fertilizer Canada on July 5 issued a statement calling on the federal government to take immediate action to end the work stoppage, noting that Canada exports 95% of the potash it produces to global markets with the majority flowing through the Port of Vancouver.
“The BCMEA recognizes and regrets the profound repercussions this labor disruption has had on the national economy, workers, businesses, and ultimately, all Canadians that depend on an efficient and reliable supply chain,” Vancouver-based BCMEA said in its Aug. 4 statement.
“All supply chain stakeholders must collaborate now to ensure we do not see disruptions like this ever again,” the statement continued. “Whether in Halifax, Montreal, or the Pacific Gateway, Canadians are relying on us – employers, unions, and the federal government – to keep goods flowing and ensure supply chain stability and resilience for the future.”