Labor Dispute Escalates at Canada Ports

After lengthy negotiations and Union's strike notice,  the British Columbia Maritime Employers Association (BCMEA) has formally locked out longshore employees, members of the International Longshore and Warehouse Union (ILWU) - Canada as of 8AM this morning. Please see below BCMEA press release. From our understanding the potential for disruption of shipments is substantial if an agreement cannot be reached, and we will keep you posted as further updates become available.

BCMEA to Lock Out ILWU Employees Effective 0800 May 30

BCMEA press release:

The British Columbia Maritime Employers Association (BCMEA) provided formal notice today to the International Longshore and Warehouse Union – Canada (ILWU – Canada) of its intention, given the strike action that is occurring in the industry, that customer members of the Association will lock out all longshore employees covered by the expired BCMEA / ILWU – Canada collective agreement effective 0800 on May 30.

This lockout will not include cruise ship operations or employees required to service grain vessels in accordance with Section 87.7 (1) of the Code.

The BCMEA did not arrive at this decision lightly, as it followed significant discussion understanding the economic impact this will have on the Canadian economy. Our preference still remains to arrive at a negotiated settlement between the parties and we continue to be committed and available to meet with Federal Mediation and Conciliation Service (FMCS) and ILWU – Canada to achieve this end.

"This has been extremely difficult conclusion to arrive at, following 17 months of bargaining, as the impact will be significant for the average Canadian who depends on the reliable flow of goods that move through our BC ports. Our preference remains to resolve this at the bargaining table without disruption; however, as a result of the recent and significant disruptions caused by ILWU – Canada's work-to-rule job action, we can no longer effectively and safely operate the impacted terminals. This has already caused cargo diversion from the BC coast and threatens further loss of cargo," said Jeff Scott, Chair of the Board of BCMEA.

As mentioned, we will keep you updated as further information becomes available. If you have any questions or concerns, please feel free to contact us.