Shippers Urge Federal Government to Safeguard Supply Chains from Labour Disruptions

Shippers are urging Ottawa to enhance protection for supply chains against labor disruptions following a series of work stoppages in the last 15 months.

In an open letter to the federal government released on Friday, executives from 10 industry groups called on political leaders to take steps to reduce the risk of strikes at crucial transport hubs and routes.

The organizations, which include the Chamber of Marine Commerce and the Canadian Federation of Independent Business, expressed concern that recent labor actions have negatively impacted employers, the economy, and Canada’s reputation as a reliable trading partner.

“Our supply chains have been severely strained in recent years, and it is increasingly unacceptable for a country like Canada to witness its economy suffer with each collective bargaining negotiation,” said Karl Blackburn, president of the Quebec Council of Employers, in an interview.

He and other signatories have requested Ottawa to consider the balance between workers’ rights and maintaining critical transport services, although the letter did not present any policy recommendations.

He highlighted the federal government’s two main tools for resolving disputes: back-to-work legislation and directives from the labor minister to impose binding arbitration through the labor tribunal.

Some experts believe that both options could undermine workers’ collective bargaining rights. Card argued that these mechanisms are “discretionary measures that politicize supply chains” and provide little predictability.

“You’re essentially balancing the interests of labor with those of consumers and businesses, often impacting our overall quality of life,” he explained.

While no specific reform proposals were put forward, Card mentioned that the United States offers a model for handling transport standoffs.

Legislation in the US enables the president to establish an emergency board to investigate major labor disputes involving railways or airlines, with work stoppages prohibited during the process.

The board issues recommendations within 30 days, followed by a one-month cooling-off period. If no agreement is reached, parties must justify to the board why they haven’t accepted its proposals before strikes and lockouts can occur.

Card described the board as an effective pressure release valve that clarifies the issues at hand.

In Canada, federal mediators often mediate between both sides to seek a compromise and secure a contract before and after labor action begins. Currently, two mediators are overseeing talks between employers and the union representing nearly 1,200 dockworkers who initiated a strike on all overtime shifts at the Port of Montreal on Thursday.

Parties can also agree to enter into binding arbitration.

Canada’s transportation routes and hubs have experienced multiple labor disruptions over the past four years, compounded by the backlogs and bottlenecks caused by the COVID-19 pandemic.

Both major railways ceased operations for several days in August due to a lockout prompted by strike threats, disrupting freight and commuter traffic nationwide.

Last October, an eight-day strike by St. Lawrence Seaway lock employees halted shipments of grain, iron ore, and gasoline along the trade corridor.

A 13-day strike by 7,400 B.C. dockworkers in July 2023 closed the country’s largest port, resulting in significant economic losses.

In Montreal, longshore workers conducted five-day strikes in April 2021 and August 2020 during a 12-day job action that left 11,500 containers stranded at the port.