Businesses fear the effects of the St. Lawrence Seaway strike

2023-10-22 17:14:44

Canadian businesses are already worried regarding the repercussions that a prolonged strike might have in the St. Lawrence maritime coy and warn that this second major labor conflict to affect the Canadian maritime transport sector this year might have consequences on the period of Holidays.

The approximately 360 union members who work on the seaway began a strike early Sunday, following last-ditch negotiations on Saturday did not allow the Unifor union to reach an agreement with the employer, the Corporation of management of the St. Lawrence Seaway (CGVMSL).

Quickly following this pressure tactic was launched, the Canadian Chamber of Commerce and the Canadian Federation of Independent Business (CFIB) expressed great concern regarding the potential repercussions of the strike.

They called on the federal government to intervene urgently to prevent the labor dispute from continuing as was the case last summer with British Columbia’s ports, which were paralyzed for 13 days in July.

According to CFIB’s vice-president of national affairs, Jasmin Guénette, many businesses are already starting to plan their inventories for the important holiday season — which in many cases begins in November with Black Friday — so that A service shutdown lasting several days in the maritime corridor linking Montreal to the Great Lakes would cause a headache for many traders.

About 4,000 ships pass through the seaway each year, including cargoes of grain, totaling $16.7 billion worth of goods last year. The labor conflict will prevent any navigation in this direction.

Salary negotiations

Salary is the main point in dispute. In the union’s view, the two parties are still “1000 nautical miles” apart on this issue.

According to the management side, the union is demanding salary increases modeled on negotiations in the automobile industry. However, she argues that the situation is different at the Seaway, where wages do not lag behind inflation, as is the case with auto manufacturers, in her opinion.

“Despite recent increases in inflation, seaway workers have negotiated wages well above inflation over the past 20 years and today find themselves nearly 10% ahead of inflation », Supported the CGVMSL in a press release.

On Sunday, negotiations were interrupted between the two camps. Unifor accused the management side of having withdrawn from the table shortly before midnight, while the CGVMSL replied that it was rather the union which had left the table before the scheduled time of the strike.

Maintain essential services

The SLSMC is now seeking a decision under the Canada Labor Code for the union to provide employees during the strike to ensure that ships involved in the transportation of grain can continue to pass through the system.

An orderly closure of the network took place during the 72-hour notice period, allowing vessels to safely exit the seaway network, the employer stressed. Currently, there are no vessels waiting to exit the network, the Corporation said, but “there are over 100 vessels outside the network that are affected by the situation.”

“During this time of economic and geopolitical crisis, it is important that the seaway remains a reliable transportation route for the efficient transportation of essential cargo between North America and the rest of the world,” said Terence Bowles, President and CEO. CEO of the CGVMSL.

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