Union for B.C. foremen accuses port employers of ‘acting recklessly’ with threat of lockout

UPDATE — Nov. 4., 2024: B.C. port lockout to begin with no deal reached in contract dispute with foremen union

The union representing more than 700 foremen in British Columbia is accusing the workers’ employers of “acting recklessly” by threatening an industry-wide lockout to close all provincial ports by 8 a.m. PT Monday.

Frank Morena, president of the International Longshore and Warehouse Union Local 514, said the B.C. Maritime Employers Association (BCMEA) publicly released a final offer on Saturday, aspects of which BCMEA said “could change if negotiations dragged on and the economic or inflationary landscape continued to shift.”

Specifically, the employers association listed four items at risk.

They include retroactivity on wages, improvements on welfare and other benefits, a signing bonus and maintenance of “the 4/3rd’s wage relationship between foremen and longshore workers.” 

The offer itself proposes a 19.2 per cent wage increase over the four-year agreement, from April 2023 until March 31, 2027. 

It also includes a 16-per-cent increase to the retirement benefit, a 10-per-cent increase to employer contributions to the welfare plan and an around $21,000 payment for eligible employees, including back pay since the contract expired.

Morena said the union will not sign a contract that risks removing existing parts of the collective agreement. 

“The BCMEA is demanding wild concessions, skipped the last mediation session, is not willing to return to the negotiating table and is planning on shutting down the entire waterfront because of an overtime ban by the union — this makes no sense — except if the BCMEA wants to create an unnecessary crisis to pressure the federal government into intervening,” he said Sunday.

Federal mediators on site for negotiations 

Steven MacKinnon, Canada’s labour minister, said in a social media post on Saturday that federal mediators are standing by and ready to help hammer out a deal in order to avoid a labour disruption at ports across B.C.

MacKinnon said he spoke with the B.C. Maritime Employers Association and the union about negotiations for their new collective agreement. He said both parties have a responsibility to reach an agreement, adding “businesses, workers and farmers are counting on them” to strike a deal.

The employers association and the union have been bargaining for more than a year and a half to renew their collective agreement that expired in March 2023.

On Thursday, the union issued a 72-hour notice for job action that would begin Monday at 8 a.m. PT.

The move prompted the employers association to issue a formal notice that it will “defensively” lock out members of the union starting at the same time.

Earlier Sunday, the employers association said it had “no further developments to report.”

“BCMEA’s final offer remains open, and if accepted by the union, would avoid unnecessary strike action,” it said in an email. 

Vancouver’s port — the largest in Canada — has seen a number of recent disruptions due to labour unrest, including days-long picketing at several grain terminals in September and a work stoppage involving both major Canadian railways in August. 

Hundreds of millions on the line

Industry experts says job action could shut down the entire West Coast port system and risk hundreds of millions of dollars of trade per day.

A 13-day port workers’ strike last year halted billions of dollars in trade, impacting docks across the country.

Jasmin Guenette, vice-president of national affairs at the Canadian Federation of Independent Business, said small businesses were caught in the crossfire.

“Many small businesses unfortunately suffer financial loss, they may lose sales, some businesses may lose inventory.”

Guenette said the federation is calling on the federal government to make ports an essential service so “they remain fully operational at all time.”

Trevor Heaver, professor emeritus at the University of British Columbia’s Sauder School of Business, said the disruption, if dragged out, will have industry playing catch up once the two parties come to an agreement. 

“Neither manufacturers nor consumers going to the shop will see the effects immediately, but if it goes on, then inventories will get drawn down and manufacturers and consumers would feel the effect,” he said.