52 per cent of grain produced in Canada last year was shipped to terminals at the Port of Vancouver
Some parts of Canada’s largest port have come to a standstill due to a labour dispute, giving farmers another thing to worry about during harvest season and amplifying concerns that the country’s supply chain is broken.
The Grain Workers Union (GWU) Local 333 workers walked off the job Tuesday morning at the Vancouver Terminal Elevators’ Association (VTEA), after serving it with a 72-hour strike notice on Saturday. The VTEA represents six of the major grain terminal operators located at the port, including Cargill Inc., Richardson International Ltd. and G3 Canada Ltd.
“The union’s bargaining committee came to the decision to issue a strike notice after VTEA invested very little effort in negotiations last week,” the union said.
Specifically, the GWU said its bargaining committee made a comprehensive proposal to the employer group, but has not been met with any type of counteroffer.
“Your union will not bargain against itself. It is the VTEA’s move,” the union said.
In a follow-up statement posted to Facebook on Monday, the GWU criticized VTEA for delivering an offer directly to its members instead of going through the elected bargaining committee. GWU said this amounts to an unfair labour practice violation and said it will be taking the matter to the Canada Industrial Relations Board (CIRB).
“We expect the CIRB to order the VTEA back to the bargaining table and to stop bargaining directly with our members,” the union said.
Sobkowich, who has not personally been involved in negotiations, said he has been told the major sticking points in the dispute are wages, pensions and scheduling.
He said grain can still be exported through terminals in Prince Rupert, B.C., and Thunder Bay, Ont., but Vancouver is the country’s largest grain exporting port. If workers are off the job for an extended period of time, it will cause major issues for companies unable to ship grain.
“There are some serious consequences to not being able to operate for a number of days, not dissimilar to if it were a rail strike,” he said.
The Grain Growers of Canada, which represents grain producers across the country, said 52 per cent of the grain produced in Canada last year was shipped to terminals at the Port of Vancouver. The association said a dispute could cost up to $35 million per day and is calling for the federal government to do all it can to stop the strike.
“Without intervention, Canada’s international trading reputation will continue to suffer, leading to the loss of key global markets and customers,” the group said.
Ian Boxall, president of the Agricultural Producers Association of Saskatchewan (APAS) and a farmer in the province’s northeast, said the news out of the Port of Vancouver is another blow for farmers and is indicative of a larger issue.
“It’s just one more thing that shows how broken our supply chain is here in Canada,” he said.
Boxall said farmers will feel the impact of the grain terminals shutting down through vessel demurrage fees along with other related costs. He said a work stoppage could lead to the entire grain handling system backing up, which would cost producers money.
“We can’t deliver the grain; hence, we can’t get paid,” he said.
Boxall said action needs to be taken to resolve the issues with the country’s supply chains. He said service disruptions as well as threatened disruptions have a negative impact on everyone in the country, and he called on the federal government to bring all the relevant parties together to identify the current problems and find solutions.
“Let’s get it fixed; it’s time it was fixed,” he said.
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