A work stoppage at west coast ports that began this morning could be ‘catastrophic’ for the Canadian pulse sector, according to an industry organization.
Approximately 700 port foremen, members of the International Longshore and Warehouse Union (ILWU) Local 514, were locked out by the British Columbia Maritime Employers Association (BCMEA) this morning, after the two sides failed to come to an agreement on a new contract. The ports of Vancouver and Prince Rupert are affected.
Although the dispute is not expected to affect bulk grain movement, shipments that move via container – including pulses – are caught in the middle. Beef shipments are reportedly also being impacted.
In a letter to federal Labour Minister Steve MacKinnon, Greg Cherewyk, president of Pulse Canada, said the lockout at the ports is only adding to the uncertainty the pulse industry is already facing amid the ongoing labour strife at the Viau and Maisonneuve terminals at the Port of Montreal.
The fall shipping season is a peak shipping season for pulse and special crop exports, 33% of which utilize container supply chains, Cherewyk said in the letter. Historically, over 300,000 tonnes of pulses and special crops move in the months of October and November alone, he added.
“These work stoppages are impacting farmers and the small and medium sized exporters in Canada that move their product to customers who do have competitive options from other regions.”
All necessary steps to end the lockout and mitigate the harm to the Canadian pulse and special crop industry and the wider Canadian economy must be taken, including government intervention, Cherewyk said.
The labour dispute between the BCMEA and the ILWU is particularly contentious with the ILWU already found to be bargaining in bad faith by the Canadian Industrial Relations Board, Cherewyk noted.
Fertilizer Canada has also raised concern about the latest west coast port dispute, estimating a shutdown will cost the industry $9.7 million per day in lost sales revenue.
Canada is the world’s largest producer of potash, responsible for close to 40% of global production, with 95% of it exported to over 75 countries. As a heavily export-driven industry, some of the biggest international buyers for Canadian fertilizer are in markets only accessible through ports.
