Port of Vancouver faces cargo bottleneck during strike by waterfront workers across B.C.

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The Port of Vancouver is clogging up with cargo during a strike by waterfront workers across British Columbia as imported seafood has yet to be unloaded and potash exports are stuck onshore, adding to the growing bottlenecks at terminals and warehouses.

The strike by 7,400 unionized waterfront employees began on Saturday, disrupting Canada’s largest port and three smaller regions. More than 35 terminals across the province have been hit in the walkout by members of the International Longshore & Warehouse Union Canada.

About 6,000 of the ILWU’s members are in the Vancouver region, 1,000 in the Prince Rupert area in northern B.C. and the rest in the Vancouver Island communities of Nanaimo and Port Alberni. The union has listed three main concerns at the bargaining table: automation, contracting out and cost-of-living wage increases.

The BC Maritime Employers Association, which represents 49 private-sector companies such as shipowners and terminal operators, said late Monday that it had a pessimistic view on the state of negotiations. It described good wages at the union, citing a median annual income of $136,000 plus benefits and pension for longshore workers last year.

“ILWU Canada needs to decide if they are going to continue this strike with no hope of settlement, or significantly modify their position so a fair and balanced deal can be reached,” the BCMEA said in an e-mailed statement. The association said it has presented nine proposals on key issues in a bid to find common ground with the union.

The West Coast strike’s ripple effects on supply chains are already being felt in the just-in-time delivery system of North America’s automotive industry, which orders some parts and materials from Asia, said Brian Kingston, president of the Canadian Vehicle Manufacturers’ Association.

“The industry is so tightly integrated between Canada, the U.S. and Mexico that even delays at Canadian ports can have implications for the broader North American production,” Mr. Kingston said in an interview Monday. “The Port of Vancouver in particular is important.”

ILWU president Rob Ashton said during a news conference late Sunday that union leaders want the federal government to steer clear of imposing a settlement.

“Labour peace in this industry comes from government staying out of the business between a union and their employers,” Mr. Ashton said.

While business groups are calling on the Liberal government to recall Parliament, Labour Minister Seamus O’Regan said the focus must be on finding a resolution at the bargaining table.

“All our energies must be directed at the table. Because that’s where the best deals are reached,” Mr. O’Regan tweeted on Sunday.

Earlier this year, Conservative Leader Pierre Poilievre accused the Liberal government of mishandling the port file, citing the Container Port Performance Index, compiled by the World Bank and S&P Global Market Intelligence. The Port of Vancouver has consistently placed near the bottom of the annual rankings.

“The last few years have reinforced the need to continue to invest in port infrastructure and technology to accommodate Canada’s growing trade and keep supply chains moving efficiently,” the Vancouver Fraser Port Authority said in a recent statement.

In April, the federal government approved the Vancouver Fraser Port Authority’s proposed $3.5-billion Roberts Bank Terminal 2 project, or RBT2, subject to 370 legally binding conditions. The ILWU and environmental groups oppose the plans to build the terminal, which would be semi-automated.

Before the strike began, B.C. Premier David Eby voiced his concerns about the potential for inflationary pressures.

“British Columbians have already seen rising costs on a whole array of different fronts on food, on essentials, driven by global inflation,” Mr. Eby said after the ILWU served 72-hour strike notice on June 28.

On Monday, Alberta Premier Danielle Smith echoed the concerns of business groups by saying the labour action will have a negative impact on the economy.

“This strike action has the potential to cause substantial economic harm on families and businesses across Canada, including here in Alberta,” Ms. Smith tweeted.

Canadian trade of various goods with China fell about 11 per cent last year at the Port of Vancouver, though Canada-China shipments remained the largest at 33.5 million tonnes.

South Korea, the United States, Taiwan and Vietnam followed China as the top five countries sending goods imported into Canada’s largest port last year. On the export side, the top five countries receiving Canadian goods originating from the Port of Vancouver were China, Japan, South Korea, India and the U.S.

Potash is among the key exports suspended at Neptune Bulk Terminals (Canada) Ltd. in North Vancouver and Pacific Coast Terminals Co. Ltd. in Port Moody.

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