Port of Montreal Lockout: Longshore Union Rejects Final Offer, Impacts Logistics Sector

The Port of Montreal Longshore Union CUPE Local 375 has emphatically turned down the final offer presented by the Maritime Employers Association (MEA), resulting in an immediate and consequential lockout at the port, disrupting operations entirely.

“This lockout affects not only the 1,200 longshoremen directly impacted by the work stoppage, but it also impacts over 10,000 workers in the logistics sector, which includes vital roles filled by trucking and railway employees, as well as maritime agents and pilots,” stated Julie Gascon, CEO of the Montreal Port Authority (MPA). “Logistics jobs are the first to be affected, which inevitably sets off a domino effect throughout the entire economy in the markets we serve.”

According to Gascon, every passing day of this labor conflict drives vessels farther away from Canadian docks and jeopardizes jobs and revenue for countless businesses. With reports surfacing that shipping lines are already diverting their vessels to other East Coast ports, the MPA’s CEO expresses profound concern regarding Canada’s supply chain reputation as a dependable destination for goods transportation in North America. Gascon highlighted that when the supply chain is disrupted, both small and large companies that depend on importing and exporting goods are compelled to explore alternatives that are often more expensive or simply non-existent.

The MEA said in a statement that it is deeply disappointed by the unfavorable outcome of the vote held by the Montréal Longshoremen’s Union regarding the final and comprehensive offer tabled on November 7, and that it had no option but to declare a lockout starting at 9 p.m. on November 10.

In this context, the MEA reiterated its earnest request to Minister of Labour Steven MacKinnon to step in and resolve the ongoing impasse as swiftly as possible.

“A number of economic and maritime players across the country have made the same request in recent weeks to expedite a resolution,” stated the MEA. “Like the MEA, they all want this dispute to be resolved so that Québec and Canadian businesses are no longer held hostage, ensuring predictable and uninterrupted operations at the Port of Montréal.”

The MEA outlined that its final offer included a three-percent salary increase per year for four years and a 3.5-percent increase for the two subsequent years, retroactively effective from the beginning of 2024. When the contract expires, the total average compensation of a longshore worker at the Port of Montréal would exceed $200,000 per year.

The MEA also emphasized that it maintained several unique benefits for Montréal longshoremen that are not available to their counterparts in other Canadian ports, which includes a pension plan fully funded by the employer and managed entirely by the union, as well as an income guarantee enabling longshore workers to receive their wages during periods when they are not working. The proposed pay increases would also apply to enhance the current pension plan, income guarantee, and other existing benefits.

Marc Cadieux, president of the Association du camionnage du Québec (ACQ), emphasizes that this ongoing conflict does not solely affect maritime transportation; it also has direct repercussions on land transportation and the hundreds of jobs associated with it.

“Nearly 2,000 trucks move through the Port of Montreal every day. The freezing of its activities will have an immediate impact on many carriers who may face potential layoffs,” he pointed out. “The ACQ strongly urges all responsible stakeholders to find a viable solution to restart commercial activities at this critical juncture of global trade as soon as possible and thus avoid compromising our international reputation.”

**Interview with Julie Gascon, CEO ‍of the Montreal Port Authority**

**Editor:** Thank you ⁣for joining us today,‍ Julie.⁢ The recent lockout at the Port of Montreal has certainly raised concerns across multiple sectors. Can you explain the immediate impact of this lockout on​ logistics and supply chains in Canada?

**Julie Gascon:** ⁢Thank you for having me.​ The lockout is significant because it not only impacts⁤ the 1,200 longshoremen ​directly involved, but ‍it also affects over 10,000 workers in⁤ the logistics⁣ sector. This includes critical roles filled by trucking and railway employees, as ‌well as maritime ‌agents and pilots. With the port operations halted, we are witnessing a cascading effect—logistics jobs are ⁤lost,‍ and companies’ ability to import and export goods is severely hampered, leading to potential business closures and a​ negative ripple⁤ effect throughout ‌our ‍economy.

**Editor:**​ That is quite concerning. You mentioned that shipping lines are starting to‍ divert their vessels to other East Coast ⁤ports. How⁤ does this affect Canada’s‌ reputation in the global supply chain?

**Julie Gascon:** It jeopardizes ​our reputation significantly. Consistent and reliable shipping options are essential for maintaining trust with global trading partners. If vessels divert away from Canadian docks, it sends a message that we cannot be⁤ counted⁤ on for timely transportation. Companies forced to look for alternatives may have to turn to more expensive routes ⁤or face delays, which is alarming ‌for both small and large ‌businesses dependent on the smooth flow of goods.

**Editor:** The Maritime Employers‍ Association has expressed disappointment in the union’s decision⁣ to reject their final offer.⁣ What steps can⁢ be taken to ‌move towards a resolution?

**Julie Gascon:** I ⁣share the MEA’s disappointment⁣ and ‌echo their ‍call for‌ Labor Minister Steven MacKinnon to facilitate a resolution. It’s essential for all parties—union leaders, employers, and government representatives—to come ⁤together to negotiate in good faith. Time ​is of‌ the essence, and every day​ this conflict continues deepens the crisis for⁣ many businesses and workers reliant on ⁣the port.

**Editor:** The broader implications of this situation are quite alarming. How are local businesses responding to these ​interruptions?

**Julie Gascon:**⁢ Many are understandably anxious. Businesses across various sectors are bracing for delays and increased costs. Some have‍ already​ started exploring‍ alternative supply routes, while others ‌are ⁢stuck ⁢in limbo, unsure of when operations​ will resume. The uncertainty is challenging for everyone involved.

**Editor:** ⁣Thank‌ you, Julie. Your insights shed light on ​an urgent situation that affects not just the Port of Montreal, but the wider ⁢Canadian⁣ economy. We hope for a ⁣swift resolution to ⁤this impasse.

**Julie Gascon:** Thank you for having me. Let’s hope that dialogue and collaboration lead⁢ us back ⁣to operational normalcy‌ soon.

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