Thousands of port workers in Canada's British Columbia go on strike

Thousands of port workers in Canada's British Columbia go on strike

World

The workers are demanding automation, the use of contract work and the cost of living for workers

(Reuters) – Several thousand unionized port workers in Canada's western province of British Columbia went on strike after failing to reach a deal to renew an industry-wide contract that expired in March, a waterfront employers group said on Saturday.

The British Columbia Maritime Employers Association (BCMEA) said it and the International Longshore and Warehouse Union Canada (ILWU Canada) had met on Thursday and Friday in talks supported by the Federal Mediation and Conciliation Service.

"Unfortunately, a tentative agreement could not be reached," the BCMEA said in a statement.

ILWU Canada members were on strike at sites across British Columbia, the BCMEA said. Asked for comment, the union said it would issue a statement once there is a resolution to the dispute over the collective bargaining agreement, which covers about 7,500 employees at 30 terminals in the province.

The walkout could have serious consequences for Canada's economy and small businesses, the Canadian Federation of Independent Business (CFIB) said in a statement. The group urged the government to ensure port operations are maintained.

On Wednesday, the longshore workers union said it had issued a 72-hour strike notice.

In a Twitter post on Saturday, Canada's Minister of Labour Seamus O'Regan Jr., said the BCMEA and ILWU Canada remain at the bargaining table working toward a deal, adding that the federal mediators continue to support the parties in their negotiations.

The two parties are at odds over issues including automation, the use of contract work and the cost of living for workers. Two mediators appointed by the Canadian government oversaw discussions that ran through the end of May. Those discussions were followed by a so-called cooling-off period between the two groups.

A strike in the western ports occurring around holidays in both the US and Canada could result in impacts on the American economy, industry followers say. The Port of Vancouver and Port of Prince Rupert are popular destinations for US trade because these ports are among the major ports of call for goods arriving from Asia. Some logistics managers have told CNBC that rail service out of those ports is a lot faster than going through the port of Seattle or Tacoma.