Canada on Tuesday intervened to end the labour disputes at the country’s biggest ports, including Vancouver in British Columbia and Montreal in Quebec, citing economic damage and the potential for driving away trading partners.

It was the second time in three months that the Liberal government has stepped in to halt a labour dispute. In August, it ordered an end to work stoppages at the country’s two largest railway companies.

The Maritime Employers Association (MEA) said it would comply with the labour board’s directive, allowing Montreal port operators to resume activity over the weekend.

The Montreal Longshoremen’s Union on Sunday rejected a final offer made for a new labour contract, leading to a lockout being declared.

The union did not immediately respond to a request for comment outside regular business hours on resumption of activities.

The dispute, which Labour Minister Steven MacKinnon said was affecting more than C$1.3 billion ($924.35 million) in goods every day, has impacted shipments of canola oil, forest products and other goods.

The International Longshore and Warehouse Union Local 514, which represents supervisory longshore workers in the British Columbia dispute, said on Tuesday it would file a legal challenge to the minister’s orders.

The BC Maritime Employers Association, which represents West Coast port employers including in Vancouver, said it received the order from the labour board on Wednesday to resume operations on Thursday.

—Reporting by Surbhi Misra in Bengaluru

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It was the second time in a few months that the Liberal government has stepped in to halt a dispute. In August it ordered an end to work stoppages at the country’s two largest railway companies.

Labour Minister Steven MacKinnon said he had directed the country’s industrial relations board to order an end to the strike and impose binding arbitration.

“As the economic losses threaten the country and begin to mount, it is up to the government to ensure that … we can get on with the economic life of this country and avoid layoffs and other carnage,” he told a press conference.

“Canadians have a limited tolerance right now for economic self-harm.”

The dispute – which MacKinnon said was affecting more than C$1.3 billion in value of goods every day – had already hit shipments of canola oil, forest products and other goods. Business groups welcomed the announcement.

International Longshore and Warehouse Union Local 514, which represents supervisory longshore workers at the heart of the British Columbia dispute, said it will file a legal challenge to the minister’s orders.

“We will fight this order in the courts,” said Frank Morena, ILWU Local 514 president, in a statement.

“And we will not forget how these employers and this federal Liberal government have attacked not only the ILWU but all of labor.”

The Canada Industrial Relations Board, which is independent but takes direction from Ottawa, would take a few days to issue the relevant orders, MacKinnon said.

The left-leaning government has previously stated its preference for resolving labor disputes through collective bargaining. MacKinnon said he had been forced to intervene after federal mediators reported the talks at Montreal and Vancouver were at an impasse.

The left-of-center opposition New Democrats, a pro-union party that is propping up the minority Liberal government, accused Ottawa of caving in to employers.

“Back-to-work orders suppress wages for all Canadians, so billionaires get richer and the rest of Canadians fall further behind,” leader Jagmeet Singh said in a statement but made no mention of bringing down the Liberals.

The Teamsters union that represents employees at the two main rail companies has filed court challenges against rulings by the labor board that forced them back to work.

“The government is sending a dangerous message: employers can bypass meaningful negotiations, lock out their workers, and wait for political intervention to secure a more favorable deal,” the Canadian Labour Congress said in a statement.

The Montreal Longshoremen’s Union rejected a final offer made for a new labor contract, leading to a lockout being declared. Exports of canola oil and forest products from West Coast ports, including Vancouver, have halted.

“These work stoppages are impacting our supply chain, hundreds of thousands of Canadian jobs, our economy and our reputation as a reliable international trading partner,” said MacKinnon, who said employers and unions had not been acting urgently enough.

“I’ve directed the Canada Industrial Relations Board to order that all operations and duties at the ports resume and to assist the parties in settling their collective agreements by imposing final and binding arbitration,” he said.

—Additional reporting by Ed White in Winnipeg

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The MEA said in a statement the lockout, which will impact nearly 1,200 port workers at the Canadian port that handled 8.7 million metric tons in the third quarter of 2024, has been declared as of 9 p.m. eastern (02:00 GMT).

The lockout will further slow Canadian imports and exports at a time the Port of Montreal was already operating at partial capacity and as West Coast ports are stopped due to a separate dispute.

The union representing longshoremen at the Port of Montreal said the offer was rejected by 99.7 per cent of members because the employer refused to negotiate.

“If the MEA had respected the collective bargaining processes, solutions would have been found and a conflict at the Port of Montreal would have been avoided,” said union adviser Michel Murray in a statement.

Two terminals operated by Termont, the container terminal operator based out of the Port of Montreal, representing about 40 per cent of Montreal’s container traffic and 15 per cent of total port volume, have been shut down by the union’s strike, which began on Oct. 31.

However, after Sunday’s announcement all longshoring at the port will be locked out. And only essential services not related to longshoring will continue at the Port of Montreal.

The MEA said that its final offer provided for a three per cent salary increase per year for four years and a 3.5 per cent increase for the two subsequent years.

West Coast ports including Canada’s largest port of Vancouver have also been mostly shut down since Monday due to a labor dispute, impacting exports of canola oil and forest products.

—Reporting by Gnaneshwar Rajan in Bengaluru, Divya Rajagopal in Toronto

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If the Canadian Union of Public Employees Local 375 does not accept the offer by Sunday at 8:00 p.m. “only essential services and activities unrelated to longshoring will continue at the Port of Montréal from 9 p.m. on Sunday,” the Maritime Employers Association said in a statement on Thursday.

So far, two terminals operated by Termont, representing about 40 per cent of Montreal’s container traffic and 15 per cent of total port volume, have been shut down by the union’s strike, which began on Oct. 31.

If the operators’ offer is not accepted, all longshoring at the port would be locked out, the association said.

The association said its pay offer represented a “cumulative increase” of over 20 per cent over six years.

A CUPE spokesperson said on Friday “an offer has been made and the union is looking at it.”

West Coast ports, including Canada’s largest port of Vancouver, have been mostly shut down since Monday due to a labor dispute, impacting exports of canola oil and forest products. Bulk grain exports are not affected.

The British Columbia Maritime Employers Association said in a statement on Thursday evening that it is scheduled to meet with International Longshore and Warehouse Union Local 514 representatives with the assistance of the Federal Mediation and Conciliation Service on Saturday afternoon.

Federal Labor Minister Steven MacKinnon has said both sides have a responsibility to reach an agreement. On Thursday, he criticized the lack of apparent progress at both ports.

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The stoppage, which started on Monday, involves limited strike action by the longshore foremen and a full lockout of Local 514 of the International Longshore and Warehouse Union by the B.C. Maritime Employers Association.

While bulk grain shipments are exempt from the British Columbia action, canola oil and forestry products are not covered by that federal labor code provision and are not being loaded onto ships at Pacific ports.

Based on the market price of canola oil, each day without shipments represents C$4 million in lost revenue, said Chris Vervaet, the executive director of the Canadian Oilseed Processors Association, which says it represents about 95 per cent of Canada’s canola and soybean crush capacity.

“We really implore the government to get involved and really help both sides to a resolution.”

Federal Labor Minister Steven MacKinnon has said both sides have a responsibility to reach an agreement. On Thursday he criticized the lack of apparent progress between the union and employers as well as a smaller shutdown affecting some container traffic at the Port of Montreal.

“Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved,” said MacKinnon in a post on social media platform X.

Vervaet said Canada exports about one million metric tons of canola oil through the Port of Vancouver yearly.

Canada is the world’s top exporter of the oilseed, and canola oil is the most valuable part of the crop.

The Forest Products Association of Canada also called for federal government intervention.

Wood, pulp, paper and byproduct shipments by the organization’s members make up about 17 per cent of Vancouver’s container exports and 14 per cent of Montreal’s.

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The strike affects two terminals operated by Termont, which handle about 40 per cent of the port’s container traffic but only about 15 per cent of the port’s overall volumes.

In a statement, the Maritime Employers Association called on federal Labour Minister Steven MacKinnon to intervene to bring parties back to the negotiating table.

“The uncertainty caused by this long delay and the recurrence of labor disputes are affecting the Quebec and Canadian economies, and Canada’s reputation as a reliable and resilient trading partner,” said the Maritime Employers Association when the strike commenced on Thursday.

Commodities like Western Canadian pulse crops are significant users of the terminals.

The union has said that it has focused actions on Termont because of employer-specific complaints.

“Termont is targeted because it is the only company at the Port of Montreal to modify schedules in a punitive way,” Canadian Union of Public Employees 375, which represents the longshore workers, said on Oct. 28.

Federal Labour Minister Steven MacKinnon said the federal government remained willing to help with mediation.

“Parties must find a process leading to a negotiated agreement as quickly as possible. Federal mediators and Minister MacKinnon remain available to assist them, and we continue to monitor the situation closely,” MacKinnon said in a statement.

The employer’s association previously asked for federal intervention.

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Both terminals are operated by Termont. Viterra’s grain terminal will continue operation, the Port of Montreal said.

The strike is the latest in a string of limited work stoppages at the port as negotiations between the Maritime Employers Association (MEA) and CUPE Longshoremen’s Union, Local 375. Most recently, workers spent 24 hours off the job between Oct. 27 and 28.

Wages and work-life balance have been among key issues cited by the union.

In a statement on Oct. 28, the union said Termont is targeted because it’s the only company at the port to “modify schedules in a punitive way.”

“Termont is provoking longshore workers and their local by using schedules that have negative impacts on work-life balance,” said Michel Murray, CUPE representative. “Let’s resolve the issues around work schedules, and then I am confident we can resolve the rest.”

The Maritime Employers Association yesterday said it was asking federal Labour Minister Steven Mackinnon to appoint a special mediator to “break the deadlock.”

According to the union, the strike would affect 40 per cent of container traffic, and 15 per cent of the total volume handled at the port.

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MacKinnon said that there would be no strike or lock-out during the deadline negotiation period, according to a post on X.

Talks between the Maritime Employers Association (MEA) and Montreal Longshoremen’s union remain in a deadlock over wages.

The parties will have to submit responses to the Labour Ministry no later than Friday, Oct. 18, the MEA said in a statement.

The strike has impacted the Viau and Maisonneuve terminals, which account for about 40 per cent of the port’s container traffic.

The Montreal Longshoremen’s Union did not immediately respond to a Reuters request for comment.

— Reporting for Reuters by Gnaneshwar Rajan in Bengaluru

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During this partial strike of indefinite duration, all port terminals will remain open but dockworkers will not be working overtime as part of their duties, it said.

The port authority estimates the strike to slow down or disrupt the handling of around 50 per cent of goods, including food, pharmaceutical products and raw materials for industries, transiting through the port, both imports and exports.

At present, around 10 ships expected at the port could be affected, it said.

The Maritime Employers Association and the Canadian Union of Public Employees did not immediately respond to Reuters’ requests for comment.

Negotiations between the two parties, along with federal mediators, resumed last week but they have not reached an agreement yet. Both the employer group and the union had previously noted scheduling of meetings as a key hurdle.

Unionized workers at the Port of Montreal went on a three-day strike late last month, impacting the Viau and Maisonneuve terminals, which account for about 40 per cent of the port’s container traffic.

—Reporting for Reuters by Abhinav Parmar in Bengaluru

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The partial strike will impact the Viau and Maisonneuve terminals, which account for about 40 per cent of the port’s container traffic. Operations are expected to remain shut till 6:59 a.m. ET on Thursday, Oct. 3.

“Montreal Port Authority expresses its disappointment that no agreement has been reached between the Maritime Employers Association (MEA) and the Longshoremen’s Union to avoid a work stoppage,” the port said.

Each day of work stoppage puts $90.7 million in economic activity at risk, the port added.

The union did not immediately respond to a Reuters request for comment.

Talks between the MEA and labor union remain in a deadlock over wages.

The president of the port authority Julie Gascon previously said she expected a strike to have a domino effect on importers, exporters and general public.

Montreal is the largest container port in eastern Canada and accounted for 3.5 per cent of Canada’s GDP in 2022, Gascon said, adding that nearly C$6 billion worth of goods were due to arrive at the port of Montreal in the coming weeks.

—Reporting for Reuters by Abhinav Parmar, Shivani Tanna and Kanjyik Ghosh in Bengaluru.

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