First day of lockout at the Port of Montreal

“It’s a matter of days” before the Canadian economy is hit hard by the dock workers’ lockout, the boss of the port of Montreal warned on Monday, while the union deplores the “mutism” of the employer and fears federal intervention.

If the conflict continues, the effects will be catastrophic. We are already seeing the domino effect throughout our economysaid the president and CEO of the Port of Montreal, Julie Gascon, at a press briefing Monday morning. Today, the conflict is affecting the supply chain, but tomorrow it will affect factories, retailers and the entire economy of Eastern Canada.

Freight boats have already left Montreal to reach other ports on the American east coast, such as New York, according to Ms. Gascon. Importing and exporting products will inevitably cost businesses in the country more with this border to cross, she added. It is not sustainable for an economy to have to do business with a foreign port.

The employer, who has chosen the path of lock-outis he not responsible for these anticipated financial losses? I am not at the negotiating table with both parties, I cannot help or decide for them the pressure measures that will take placedefended herself CEO.

On Sunday evening, the Maritime Employers Association (AEM) declared a lockout of some 1,200 Montreal longshoremen. A few hours earlier, almost all of them rejected the final and overall offer from the employer side by 99.7%. Although essential services are maintained at the port, the majority of activities are affected.

No response

We’ve been asking the management side to sit down with us to negotiate for three weeks.thundered union advisor Michel Murray on Monday, who deplores that the last four invitations from the union have remained a dead letter. The president of the employers’ association does not respond to emails from the president of the union. It’s not nothinghe blurted out.

Mr. Murray believes that lock-out simultaneous operations at the Port of Montreal and Vancouver are not the result of chance. It is a group shot, coordinated and planned to increase pressure on the government to intervene in our filehe lambasted, recalling that the previous negotiation, in 2021, had ended due to a special law from Ottawa forcing a return to work.

The Maritime Employers’ Association has already called for the intervention of the federal Minister of Labor, Steven MacKinnon, as well as the Chamber of Commerce of Metropolitan Montreal and Manufacturers and Exporters of Quebec (MEQ). The latter also requests that port services be considered essential services.

The parties must understand the urgency of the situation and do the work necessary to reach an agreement. Canadians are counting on themMinister MacKinnon reacted on Monday. In his eyes, the negotiations progress too slowly et betray a lack of sense of urgency on the part of the parties involved.

An agreement is still possible between theAEM and the longshoremen, insisted union advisor Michel Murray. Workers are even open to signing for very long termor beyond four years, he suggested. Provided, however, that guardrails be enshrined in the new collective agreement to guarantee its respect on the ground.

Of the millions stake

Several business associations have expressed concerns if the lock-out was to continue, including the Quebec Trucking Association. Its president, Marc Cadieux, calls on the parties to reach an agreement quickly as the holiday season approaches.

No less than 2,000 trucks circulate every day at the Port of Montreal to transport more than half of the goods found there, notes Mr. Cadieux. With this freeze in activities, some carriers can distribute their workforce to other activities, but others are already considering temporary layoffs.

A single day of activity at the port means 400 million dollars in goods transit and 268 million in economic benefits, argued the CEOJulie Gascon. If you project yourself in two weeks, that’s six billion dollars of goods that will not transit and four billion in economic benefits that will not arrive.she said.

Still according to Ms. Gascon, this work stoppage affects at least 10,000 workers across the country, such as truckers, shipping agents and conductors, not to mention sailors forced to wait on board ships. .

Two freight ships are currently docked in Montreal and four others are anchored in Les Escoumins, a mandatory stop for these boats traveling on the St. Lawrence River.

Market shares

The lock-out will not be without effect on the Canadian economy, but it is not on the verge of collapse, even if the conflict lasts for a few days, or even a few weeks, nuance at the end of the line Julien Martin, professor at the School of Management SciencesUQAM.

Firstly because the services sector represents a large part of the country’s economy, but also because there are other ports on the American east coast where goods can be unloaded before taking the road or train to reach Quebec or Ontario. It will cost more, it will take longer, but the supply chain can cope with ithe notes.

That said, Montreal could lose market share to the benefit of American ports, with which it is in competition, underlines the economist. And companies could face shortages or have difficulty exporting their product and thus honoring their contracts.

It’s our reputation that is at stake in terms of reliability, Julie Gascon, from the port of Montreal, warned on Monday. She is convinced that maritime lines will divert from the Quebec metropolis towards those of the United States if the lock-out stretches.

The Maritime Employers’ Association and the Montreal longshoremen have been negotiating for months, without success. It must be said that the gap is considerable between union demands and the employer offer.

L’AEM proposes a salary increase of 3% per year for four years and 3.5% for the following two years. This offer would increase the average salary of longshore workers to $200,000 per year, the employer maintains.

For its part, the union is demanding the same increases as those granted to longshoremen in Vancouver and Halifax, i.e. 20% over four years. He also calls for more flexible working hours.

The collective agreement for longshoremen expired on December 31, 2023.

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