Workers to rally on Day 6 of B.C. port strike, as employer seeks binding arbitration | CBC News

Striking port workers will rally near the Vancouver waterfront to mark their sixth day on the picket line as they seek a new contract with the B.C. Maritime Employers Association (BCMEA).

About 7,400 members of the International Longshore and Warehouse Union (ILWU) have been off the job since Canada Day to back demands for improved wages and provisions against contracting out and automation.

The mid-morning demonstration is organized by the union and billed as a solidarity rally, with members being reminded that there is pride, strength and commitment in numbers.

It comes as the BCMEA, which represents management at more than 30 B.C. ports, has said binding arbitration could quickly end the strike.

Federal Labour Minister Seamus O’Regan is instead urging the two sides to make use of available mediators and resume negotiations.

O’Regan met with his B.C. counterpart, Labour Minister Harry Bains, on Wednesday to discuss the strike, which has idled Canada’s busiest port, in Vancouver, as well as the third busiest port, in Prince Rupert.

CP Rail, now known as CPKC Ltd., issued temporary embargoes on rail traffic to the Port of Vancouver this week, while officials in Alberta and Saskatchewan have joined with business organizations in B.C. and across Canada calling for federal legislation to end the job action.

“Negotiations are still paused. However, the BCMEA remains ready to re-engage at a moment’s notice, assuming ILWU Canada is prepared to present a reasonable proposal,” the association said in an email Wednesday.

The strike has potentially disrupted $3.7 billion of cargo, it said.

“Automotive parts, refrigerated food, fertilizer, critical minerals and goods are not reaching Canadians or our trading partners abroad,” said the association.

Data shows the Port of Vancouver handles approximately 142 million tonnes of cargo annually, while nearly 25 million tonnes of goods moved through Prince Rupert in 2022.

Strike could cost $250M per week, experts say

The strike could cost companies hundreds of millions of dollars per week, experts and business groups say, with smaller operators and consumers feeling the biggest pinch.

Industry organizations say the job action will back up shipments, deplete inventories and boost prices on goods in shorter supply.

The economic toll will amount to at least $250 million per week, said Werner Antweiler, chair in international trade policy at the University of British Columbia’s Sauder School of Business.

“The first week or two, businesses are usually able to bridge quite fine. It gets increasingly worse after that, as some businesses will run out of inventory and cannot replenish it easily,” he said.

Companies face the choice of riding out the strike by drawing on existing stock and holding on to exports that cannot be shipped — resulting in lost sales and storage costs, respectively — or finding alternative routes for their products, including through already stretched ports in the United States.

“Even if some businesses are rerouting through this channel, it will be more expensive. It will take longer because now things will be starting to queue and it will have spillover effects on the entire system,” Antweiler said.

Small- and medium-sized businesses will be hurt most, since they have fewer resources and less leverage to lean on, said Dennis Darby, who heads the Canadian Manufacturers and Exporters trade group.

“Companies don’t run huge inventories, as we learned during the pandemic,” Darby said, adding some will be able to hold out for just a few days.

“They may have contracts with their customers and they don’t have the ability to pass on (cost) increases,” he added. But for those that can, “it just adds to the potential inflationary effect.”