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Cdn. ag facing labour challenges at two ports

Cdn. ag facing labour challenges at two ports
Nov 05, 2024
By Diego Flammini
Assistant Editor, North American Content, Farms.com

These issues damage Canada’s reputation as a reliable supplier, Grain Growers of Canada says

Canadian farmers once again find themselves caught in the middle of labour disputes at shipping ports.

In Vancouver, B.C., the BC Maritime Employers Association locked out about 700 members of the International Longshore and Warehouse Union 514 on Monday.

As of 12:15pm ET on Nov. 5, the shutdown has disrupted more than $658 million of trade, the Greater Vancouver Board of Trade’s Port Shutdown Calculator says.

And in Montreal, Que., the Viau and Maisonneuve terminals, which account for about 40 per cent of the Port of Montreal’s handling capacity, are closed due to a strike.

More than 2,000 vessels per year travel through the Port of Montreal.

Between these two situations and other disputes throughout the year like August’s rail strike, Canada’s grain industry is frustrated, said Kyle Larkin, executive director of Grain Growers of Canada.

“Grain shipments have never been impacted this much in one year, let alone in a four-month period,” he told Farms.com. “It’s had a heavy impact on our international reputation.”

That reputation relies on transportation.

In 2023, Canada exported 53 million metric tonnes of grain and related products. And over 50 per cent of all Canadian agricultural products are destined for export markets – if they can get there.

“The number one thing partners say whether it’s the Americans, Japanese or any other global partner, is they want reliability of the product reaching their market,” Larkin said. “Our international reputation has been severely damaged, and we may be going down a path that’s irreversible at a time when other countries are looking to expand their own international trade. That could come at Canada’s expense if we always seem to have these transportation issues.”

These kinds of challenges also affect the greater supply chain – including farmers.

“When you have delays at the ports, that causes slowdowns at the rail lines. That slows things down at the grain elevators, and could prevent a farmer from dropping their grain off at an elevator and being paid for that grain,” Larkin said.

The labour disputes in Vancouver and Montreal need to end now.

That’s why GGC is encouraging farmers and Canadians to sign a letter to Labour Minister Steven MacKinnon urging him to use his authority to resume operations.

“We asked the minister to use all tools available to him and the government to deal with the situations we face,” Larkin said.

In a Nov. 2 post on X, Minister MacKinnon indicated that federal mediators are in B.C. and ready to assist, but it’s up to the two parties to reach an agreement.

Fertilizer Canada has provided the government with an authority it can use to get goods moving again.

In a Nov. 1 press release, the organization identified Section 87.7 of the Canada Labour Code as a solution.

This law pertains to services to grain vessels.

It outlines that during a strike or lockout, an employer, employees and their bargaining representatives “shall continue to provide the services they normally provide to ensure the tie-up, let-go and loading of grain vessels at licensed terminal and transfer elevators, and the movement of the grain vessels in and out of a port.


Trending Video

Grain Markets - Darin Newsom

Video: Grain Markets - Darin Newsom

Between harvest being in full swing and new strikes happening in shipping ports on in the gulf and on the east coast, there were a lot of current events testing the markets this week. Joining us this week to discuss those trends is Barchart Senior Analyst Darin Newsom. Here is our conversation from Thursday morning.