Canada's labour minister seeks arbitration as dock workers reject contract

 

(Reuters) - Toronto, July 29 (Reuters) - After the dock workers union in western Canada rejected a contract, Canada's labour minister authorised the Canada Industrial Relations Board (CIRB) on Saturday to examine if a negotiated solution or arbitration was still conceivable.

Seamus O'Regan, Minister of Labour, stated that the government was exercising its jurisdiction under section 107 of the Canada Labour Code to "preserve" industrial peace.

According to the minister, the CIRB will decide whether to impose a new collective agreement or a final binding arbitration to address unresolved conditions of the collective agreement. According to the minister, the ports in British Columbia are still working.

Dock workers in Western Canada have rejected a proposed labour contract that would have put an end to a conflict that has already hampered commerce and might have further economic ramifications by halting operations at the country's major ports.

For months, the International Longshore and Warehouse Union (ILWU), which represents over 7,500 dock workers, had been negotiating a new contract with the British Columbia Maritime Employers Association (BCMEA).

"The membership of the ILWU Canada Longshore Division has said no to the terms of the settlement," the workers' union said in a statement early Saturday, calling on its direct employers to negotiate.

Alberta Premier Danielle Smith encouraged elected officials and union employees on Saturday to return to Ottawa immediately to approve back-to-work legislation.

The BCMEA expressed disappointment that the ILWU rejected a tentative deal that would have delivered a 19.2% compounded salary rise and enhanced retirement benefits in 2026 to C$96,250 ($72,625) for qualified retiring employees, in addition to pension entitlements.

The proposed agreement also included a signing incentive of C$1.48 per hour worked for each employee, equivalent to around C$3,000 per full-time worker, and an 18.5% increase to a Modernization and Mechanisation retirement lump sum payout, according to the BCMEA.

The BCMEA also stated that it would await additional guidance from the federal government on the next actions, while the ILWU had not signalled its next plans and would continue to be able to issue 72-hour strike notifications.

Last Monday, the leaders of the dock workers union in Canada's Pacific region supported the draught contract agreement with employers.

Earlier last month, 7,500 employees went on strike for 13 days over differences over matters such as salary hikes and expanding the union's authority to normal terminal maintenance duties.

The strike has disrupted operations at two of Canada's major ports, the Port of Vancouver and the Port of Prince Rupert, both of which are important gateways for exporting natural resources and commodities and bringing in raw materials.

Economists have warned that the strike might cause further supply-chain disruptions and increase inflation as the Bank of Canada attempts to calm the economy.


Nutrien (NTR.TO), the world's largest fertiliser manufacturer, has already reported a commercial effect, and according to a poll, more than half of small Canadian business owners expect their operations to be impacted.

"Enough is enough," Perrin Beatty, president of the Canadian Chamber of Commerce, said in a statement, adding that the country cannot afford any more interruption.

"We need to get Parliament back to work if we are to reopen our ports."

(1 US dollar equals 1.3253 Canadian dollars)
Ismail Shakil in Ottawa and Gokul Pisharody in Bengaluru contributed reporting, while Muralikumar Anantharaman, Mark Potter, Deepa Babington, and Diane Craft edited the piece.