October 26, 2024
Dockworkers at the Port of Montreal are set to initiate a 24-hour strike that will disrupt cargo operations at one of Canada’s largest seaports, intensifying their campaign to pressure employers as negotiations for a collective agreement remain stalled.
The longshore union issued the strike notice shortly after the federal government’s initiative to resolve the deadlock was met with resistance. Workers plan to halt work from Sunday morning.
The Maritime Employers Association cautioned that the strike will lead to significant repercussions, including a considerable decrease in cargo, which will exacerbate the uncertainty that has mounted during the negotiation process.
The association, representing the port’s employers, stated that after 35 mediation sessions over 15 months, it became evident that the parties had reached a stalemate.
“The economic health and stability of Canada are deeply interconnected with the Port of Montreal, which stands as the largest port in Quebec and the second largest in Canada,” it emphasized.
This port serves as a crucial hub for goods trafficking via the St. Lawrence Seaway, catering to Quebec, Ontario, and the U.S. Midwest. It is essential for various industries, including automotive, agriculture, and construction. In 2023, it processed around 35.3 million metric tons of cargo, with approximately 2,000 vessels navigating through annually, alongside as many as 2,500 trucks daily and over 60 trains weekly.
Due to the ongoing labor dispute, the Port of Montreal has signaled potential processing delays and a backlog of containers awaiting processing.
Meanwhile, logistics firms have reported that some clients, anxious about potential labor disruptions, have redirected their shipments to alternative ports.
The Maritime Employers Association highlighted that clients will continue seeking other options if industrial peace is not restored in Montreal. Many may never return, favoring reliable and stable cargo handling.
The Canadian Union of Public Employees Local 375, with nearly 1,200 members, began a strike on overtime work earlier this month after a majority rejected the latest offer from the Maritime Employers Association in April. Around 350 stevedores and cargo handlers also engaged in a three-day strike earlier this month that closed two cargo terminals, halting about 40% of the total container handling capacity.
According to the employers’ association, cargo processed by Montreal longshore workers has declined by 24% since 2022, primarily benefiting ports on the U.S. East Coast. This group is poised to enter discussions with the Federal Mediation and Conciliation Service in the upcoming weeks.
Labor Minister Steven MacKinnon, who proposed a 90-day moratorium on pressure tactics from both sides so negotiations could recommence, stated earlier this week that a quick resolution toward a negotiated settlement is essential. His office confirmed that the minister and federal mediators remain ready to assist in finalizing a deal.
The previous collective agreement for dock workers lapsed at the end of last year, and the longshore union has indicated that discussions for a new deal have stalled over disputes regarding scheduling and pay. When Montreal dock workers left the job in 2021, the strike was concluded with back-to-work legislation introduced by Ottawa, which aimed to alleviate stresses on supply chains already strained by the COVID-19 pandemic.
The conflict in Quebec contributed to other trade pressures facing Canada this year, including a strike by grain terminal workers on the West Coast that impacted six terminals at the Port of Vancouver in British Columbia, as well as a short work stoppage on freight lines operated by Canadian Pacific Kansas City and Canadian National Railway nationwide.
Data released on Thursday by Statistics Canada revealed that the temporary shutdown of these two rail networks significantly affected railway carloadings in August, with freight transported by the country’s railways dropping nearly 11% year-over-year to 27.8 million metric tons, marking the lowest volume in over a decade.
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