29 July (Lloyd's List) - A REPEAT of last summer’s disruption on Canada’s west coast is on the cards again, with a strike potentially starting in mid-August.
The International Longshore and Warehouse Union Local 514, which represents longshore foremen on Canada’s west coast, told the British Columbia Maritime Employers Association of its intent to conduct a strike vote over the coming weeks, the association said on Friday.
“Following a scheduled case management meeting with the Canada Industrial Relations Board that occurred on Wednesday, ILWU Local 514’s legal counsel notified the parties that the union would be conducting an industry-wide strike vote, inclusive of all its members, in the coming weeks.
“The union noted that it will take at least until August 9 to complete the vote. Their legal counsel committed that no 72-hour strike notice would be served until the vote was completed, if at all,” the BCMEA said in a statement.
The August 9 deadline coincides with the end of a four-day hearing at the CIRB regarding the union’s manning proposal at DP World’s terminal in Vancouver, which the BCMEA alleges is illegal and constitutes bad-faith bargaining by the union.
The ILWU’s move comes after it sought to strike at DP World earlier in July but was denied by the CIRB. The tribunal’s chairperson Ginette Brazeau argued that the union “failed to bargain in good faith” when it conducted a strike vote among workers of just one member employer of the BCMEA.
The 730 foremen of ILWU Local 514 are covered under a separate contract to the 7,400 longshore workers of ILWU Canada. The BCMEA and ILWU (excluding Local 514) agreed a four-year contract last summer after a tumultuous and often chaotic month that began with a 13-day strike.
The dockworkers went on strike on July 1 last year, with the union’s negotiating team agreeing on July 13 to a tentative agreement that was devised by federal mediators. But the union’s caucus rejected the agreement on July 19, with a second tentative deal was rejected several days after by the union’s rank and file. The third time proved to be a charm — after Canada’s government referred the labour dispute to the CIRB — and a new four-year deal was ratified in August, with 75% of members voting in favour.
Last year’s strike disrupted the flow of the billions of dollars in goods but came at a time where North American box volumes were relatively low, ocean shipping demand globally was muted, and seaborne supply chains had a plenty of flexibility.
West coast port volumes are higher now, and so is demand for ocean transport, both due to higher volumes globally and longer voyages around the Cape of Good Hope. A strike in British Columbia ports — which includes Vancouver, one of the five largest ports on North America’s west coast — could therefore have a more significant impact this time around.
ILWU Local 514 rejected a “final offer” from BCMEA in June, with 99% of longshore foremen voting against it. One of the key issues, according to the union, is that DP World notified it in December that it was “unilaterally” planning to introduce automation with respect to container handling at Centerm terminal’s intermodal rail yard. The union is also seeking to improve retiring allowances and benefits.
The BCMEA said it has previously offered 19.2% wage increase, which “could have enhanced the median foreperson compensation from $246,323 to $293,617 annually, not including benefits and pension”.
It added that eligible workers would have received a lump sum payment of about $15,000 on average, which would include a signing bonus and retroactive pay increase.
