Twin port shutdowns risk more damage to Canadian economy: business groups

“We just can’t keep repeating this, because it puts you at a disadvantage.”

He said the incoming U.S. administration will be about America first, and looking for partners who help drive its economy, so Canada needs to be especially aware of the wider implications of disruptions like this.

Between $400 million and $800 million a day in goods aren’t moving because of the strikes, creating risks throughout the economy, said Darby. Last year’s 13-day port strike in B.C., for example, noticeably cut into GDP growth, he said.

The disruptions will have more immediate effects on manufacturers relying on critical parts coming into Canada, he said, while consumers will feel it if it drags on.

The Canadian Chamber of Commerce estimates the total value of goods disrupted is even higher at over a billion dollars a day, while the twin port shutdowns hurt the country’s reputation, said Pascal Chan, senior director of transportation, infrastructure and construction.

“With simultaneous disruptions underway at our largest East Coast and West Coast ports, we are effectively advertising to the world that Canada is closed for business,” he said in a statement.

Chan called on the government to intervene and put an end to the disputes.

Labour Minister Steven MacKinnon said last week that talks were progressing at an insufficient pace, while on Monday he urged all involved to work something out.

“The parties must understand the urgency of the situation and do the work necessary to reach an agreement. Canadians are counting on them.”

The Montreal Port Authority locked out longshore workers at 9 p.m. ET on Sunday night after the unionized workers voted to reject a contract offer tabled last week.

The Port of Montreal said essential services will continue at the port, with liquid bulk terminals and the grain terminal among those remaining open.

Members voted 99.7 per cent to reject the proposal, said a spokesman for the Canadian Union of Public Employees. The union has said it will accept the same wage increases that were granted to its counterparts in Halifax or Vancouver — 20 per cent over four years. It is also concerned with scheduling and work-life balance.

The shutdown in Montreal comes after a separate labour dispute halted container cargo shipping at British Columbia’s ports last Monday.

The Maritime Employers Association said it imposed a lockout after the International Longshore and Warehouse Union Local 514 commenced “industry-wide strike activity” at employers’ terminals.

Negotiations in B.C. resumed on Saturday but talks were quickly cut off with no progress made, said the BC Maritime Employers Association.

This report by The Canadian Press was first published Nov. 11, 2024.

by Canadian Press

Twin port shutdowns risk more damage to Canadian economy: business groups

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