Port of Vancouver on brink of shutdown
Limited longshore strike sparks lockout
VANCOUVER • The Port of Vancouver, a key link for Canadian trade with Asia, appears headed to an almost full shutdown after companies that operate port facilities announced a lockout.
The B.C. Maritime Employers Association, which negotiates for the companies that own port facilities, gave notice Tuesday to the International Longshore and Warehouse Union of Canada, saying that because of a limited longshore strike that began Monday, it would lock out most of the 6,000 longshore workers at 8 a.m. on Thursday.
The association represents about 55 waterfront employers and 7,000 employees, who move 60 million tonnes of goods worth $53 billion a year.
The lockout won’t affect cruise ship operations or, under federal law, loading and handling of ships at the port’s grain terminals.
The association said it didn’t arrive at the decision lightly given the potentially major impact a shutdown will have on the Canadian economy, and would prefer to continue negotiations, which began 17 months ago.
“We’re hoping that we can get back to the bargaining table. Our focus continue to be returning to the table to reach a fair and equitable agreement,” said Jeff Scott, chair of the B.C. Maritime Employers Association. “We do not want to lock out the employees, so it would really be a last resort.”
The union began a partial strike on Monday targeting just Global Container Terminals Canada, which operates the Deltaport and Vanterm container terminals.
The union characterized it was a “limited and targeted job action” involving an overtime ban, but Scott said the reality on the ground was “almost full-scale” job action, against those terminals, which together handle a big majority of the millions of containers that pass through Vancouver every year.
“Immediately there were work stoppages, there were productivity delays, there were other disruptions, so it was significantly different to what we were led to believe was going to happen on Monday and Tuesday,” Scott said.
He said four cargo vessels have already diverted from the B.C. coast, and that others may be considering switching to U.S. ports.
“We’re very concerned that we cannot continue to operate the facilities in an efficient and safe manner,” Scott said. “We were left no other recourse other than to issue a lockout notice.”
Rob Ashton, president of the International Longshore and Warehouse Union of Canada, said in a statement: “This is a reckless, irresponsible and needless decision that will undermine the economy of B.C. and Canada.”
Scott said the association has requested intervention by the federal government, which regulates ports, and would like to get back to the bargaining table with the union and specialists from the Federal Mediation and Conciliation Service.
The major sticking point in contract talks has been the desire by employers to increase automation at the port.
A strike would likely idle thousands of truck drivers and employees of companies that serve ships in the port.
Deltaport is the largest of the four container terminals in Vancouver, which is by far Canada’s largest port. Vancouver is the third largest port in North America by tonnes of cargo.
WE CANNOT CONTINUE TO OPERATE THE FACILITIES IN … SAFE MANNER.
There have been 12 labour disruptions at the Port of Vancouver since 1969. There was a nine-day lockout in 1999, a one-day strike in 1998 and another strike in 1995. This resulted in 175 days lost, not counting 2005, when truckers withdrew their services for six weeks.
In 2018, shipments through the Port of Vancouver’s four container terminals reached a record 3.4 million 20-foot-equivalent containers. The Port of Vancouver expects to reach container capacity soon and is working to expand terminals.
In 2011, it was estimated a port shutdown could cost the Canadian economy $100 million a day. Since then the port has only grown.