Experts are warning that Canada is facing a looming supply chain crisis with far-reaching effects on the economy, as terminal operators began locking out dockworkers in Montreal, following a similar action in British Columbia a week earlier. Both dockworkers in Montreal and foremen on the West Coast are demanding better working conditions, and with contracts expired for months, tensions are escalating between the unions and the associations representing terminal operators.
The union representing Montreal dockworkers reported that its members overwhelmingly rejected the latest offer, which included a 20 percent wage increase over six years. The union accused employers of creating a “two-tier workplace” that undermines job security for younger workers. They also reiterated demands for “more stable schedules,” pointing to long-standing grievances about work-life balance. The Maritime Employers Association in Quebec had set a deadline of November 10 for an agreement, but when talks failed, they followed through with a lockout at the Port of Montreal. At the same time, they appealed to the federal government for intervention.
On the West Coast, similar issues are stalling contract negotiations, leading to a lockout that began on November 4. The foreman’s union points to the impact of automation, particularly at DP World, which they argue is disrupting staffing levels and work schedules. While federal mediators briefly facilitated talks on November 9, no progress was made, and no new discussions have been scheduled. Transportation expert Pascal Chan of the Canadian Chamber of Commerce commented, “The country is effectively advertising it’s closed for business.” Business groups like the Canadian Manufacturers & Exporters Association have also expressed frustration, echoing sentiments from executives in British Columbia.
The ports affected by the lockouts handle a combined C$1.2 billion in daily trade, making them critical to the Canadian economy. British Columbia’s ports alone manage more than US$575 million a day in goods, while Montreal handles nearly US$300 million daily. The lockouts have halted all container terminals and general cargo operations, with the exception of grain terminals. Union leaders accuse employers of using the lockouts to force federal intervention. Despite expressing concerns about the slow progress of negotiations last week, Labour Minister Steven MacKinnon has remained silent, with no action expected on November 11 due to the national holiday.
Julie Gascon, CEO of the Port of Montreal, warned the media that the lockout would soon begin to affect the broader economy and consumers. The initial impact is being felt by truckers and others in logistics, but it is expected to quickly ripple out to manufacturers and retailers. Shipping carriers have limited alternatives, with Maersk and CMA CGM planning to reroute ships to Halifax or St. John, while on the West Coast, the only viable option is to divert shipments to U.S. ports. Canada’s rail lines are also taking measures to mitigate the effects, including halting the acceptance of exports destined for the ports.
Last year, after a 13-day strike at the West Coast ports, Prime Minister Justin Trudeau convened a government council that pressured both unions and employers into a resolution. With Canada’s largest ports now all locked down, business leaders and trade associations are once again calling for immediate government action to reopen the supply chains.
