Canada Steps In to End Labour Strikes At The Country’s Biggest Ports, Averting Economic Damage

The Canadian government has stepped in to put an end to the ongoing labour disputes at the country’s biggest ports, including Vancouver and Montreal.

The government is concerned about the strikes damaging the economy and Canada’s trade reputation.

Labor Minister Steven MacKinnon said the Canada Industrial Relations Board (CIRB) had been ordered to end the strikes and impose binding arbitration.

Binding arbitration is a process in which a neutral third party, called an arbitrator, helps in resolving disputes between two or more parties. The arbitrator hears both sides, reviews the evidence, and makes a legally binding decision. This means that the decision must be followed and enforced in court.

This is the second time in a few months that the government has intervened to stop labour disruptions. Earlier this year, it forced the end of work stoppages at Canada’s two largest railway companies.

MacKinnon said that the strikes were costing the country more than C$1.3 billion ($932 million) every day, mostly affecting canola oil, forest products, and other goods. “It’s up to the government to make sure the economy keeps running and to avoid layoffs,” according to him.

Business groups supported the government’s decision, but not everyone did.

The International Longshore and Warehouse Union Local 514, which represents workers in Vancouver, said that it will challenge the government’s order in court. Frank Morena, the union’s president, criticized the actions of the government and companies.

The government’s decision comes after federal mediators reported that negotiations between the unions and employers had stopped. MacKinnon said the strikes were harming the economy and that immediate action was required to protect Canadian jobs and the country’s international trade relationships.

The New Democratic Party (NDP), a pro-union political group, also criticized the government’s intervention, saying that it benefits companies while hurting workers by reducing wages.

The Canadian Labour Congress expressed concern that such moves could harm future employer-union discussions.

The strikes have stopped exports from West Coast ports, severely disrupting Canada’s supply system. The government believes binding arbitration will quickly resolve disputes and allow operations to go normal at the country’s major ports.

References: Reuters, AP News

Source: Maritime Shipping News