Business groups say the work stoppage at B.C. ports is the latest in a run of supply chain disruptions affecting Canadian companies and the country91裸聊视频檚 economy.
Employers at most of the province91裸聊视频檚 ports locked out their workers Monday in a dispute involving roughly 700 unionized foremen. The workers represented by the International Longshore and Warehouse Union Local 514 have been without a contract since March 2023.
91裸聊视频淚t91裸聊视频檚 been absolutely brutal. I mean, the timing of this is just really challenging,91裸聊视频� said Pascal Chan, senior director of transportation, infrastructure and construction at the Canadian Chamber of Commerce.
Canadian supply chains have been under considerable strain over the past few years, from labour disputes to wildfires and floods as well as the COVID-19 pandemic, he said.
The latest disruption comes less than a year and a half after a 13-day strike by different workers at most B.C. port terminals and just a few months after a countrywide work stoppage at Canada91裸聊视频檚 two biggest railways.
Greater Vancouver Board of Trade president Bridgitte Anderson said the shutdown will disrupt $800 million in goods every day, warning it could put upward pressure on inflation.
91裸聊视频淭he Port of Vancouver is far and away the most significant port that we have in Canada,91裸聊视频� said Fraser Johnson, a professor of operations management at the Ivey Business School at the University of Western Ontario.
He said the port handles about 45 per cent of the total volume of Canada91裸聊视频檚 ports, with the next largest being Montreal at about 10 per cent.
91裸聊视频淚 think a lot of people tend to focus on what91裸聊视频檚 coming into the country in terms of consumer goods, automobiles, electronics, especially this time of the year, when we91裸聊视频檙e coming up to the holiday season,91裸聊视频� said Johnson.
91裸聊视频淏ut there91裸聊视频檚 a lot of stuff that gets exported out of Canada. So lumber, commodities like coal, for example, iron ore, all get shipped out of Canada via our West Coast ports.91裸聊视频�
Johnson said the longer the port stoppage goes on, the harder businesses91裸聊视频� bottom lines and the economy will be hit.
If it goes on for several weeks, consumers could start to see more of an impact as well, he said.
But for some retail goods that aren91裸聊视频檛 stockpiled as far in advance, the impact could be more immediate, said Matt Poirier, vice-president of federal government relations at the Retail Council of Canada.
Retailers are still playing catch-up from previous disruptions heading in to their busiest time of year, said Poirier.
91裸聊视频淭hese last-minute holiday goods are arriving and they91裸聊视频檙e being stopped. So absolutely it won91裸聊视频檛 take long for empty shelves to start showing up.91裸聊视频�
The 2023 B.C. port strike cost manufacturers an average of $207,000 per day, Canadian Manufacturers and Exporters president and CEO Dennis Darby said in a statement Friday.
The Chamber91裸聊视频檚 Chan urged the government in a statementto 91裸聊视频渦se every tool at its disposal to resolve this dispute.91裸聊视频�
The federal government was relatively hands-off in last year91裸聊视频檚 port dispute, said Johnson 91裸聊视频� unlike the rail stoppage, which saw the government ask the Canada Industrial Relations Board to order a return to work and binding arbitration, which it did.
Despite the importance of Canada91裸聊视频檚 ports, Johnson said the rail disruption posed a more imminent threat.
91裸聊视频淩ailroads touch most of the products that people consume at some point in the supply chain, so they91裸聊视频檙e really the lifeblood of the Canadian economy,91裸聊视频� he said.
91裸聊视频淪hutting down a port for a couple of weeks probably isn91裸聊视频檛 going to be something that people are going to notice, but 91裸聊视频� a rail disruption would have much more significant economic impact and significant impact on consumers directly.91裸聊视频�
On Friday, Fertilizer Canada also raised the alarm about the impending labour disruption, saying the ports are vital for exporting potash overseas and a shutdown would cost the industry $9.7 million per day in lost sales revenue.
The organization said the 2023 dispute cost the fertilizer industry more than $126 million, and had knock-on effects beyond the 13 days workers were off the job: in the months after the stoppage, Canada lost significant market share to Russia in key markets, it said.
91裸聊视频淲e are once again on the brink of losing access to a critical trade corridor, and potash fertilizer will be one of the hardest-hit commodities,91裸聊视频� said president and CEO Karen Proud in a statement.
The organization called on the federal government to amend the Canada Labour Code to 91裸聊视频渆nsure the continuous movement of fertilizer products at ports during labour disputes.91裸聊视频�
Nutrien, the world91裸聊视频檚 largest potash producer, said that its marketing and delivery subsidiary Canpotex is exploring alternatives to mitigate the stoppage91裸聊视频檚 effect on customers.
However, a prolonged disruption could negatively affect farmers and food security globally, said media relations manager Shawn Churchill in an emailed statement.
On the other side of the country, the Port of Montreal is also in the midst of a dispute, with two terminals closed until further notice as about 1,200 longshore workers began striking at the end of October.
91裸聊视频淚t91裸聊视频檚 a double whammy for us,91裸聊视频� said the Retail Council91裸聊视频檚 Poirier, adding that the Montreal disruption disproportionately affects retailers because it91裸聊视频檚 container traffic.
Retailers have learned lessons from the supply chain disruptions of the past few years, said Poirier.
91裸聊视频淪ome retailers have been avoiding ports for months already in anticipation of this,91裸聊视频� he said.
However, smaller businesses don91裸聊视频檛 have the same flexibility as larger companies, Poirier said.
91裸聊视频淲hen the costs are exorbitant, which they tend to get, then they91裸聊视频檙e the ones really 91裸聊视频� getting the short end of the stick.91裸聊视频�
