Labour disruption could weaken Canada-U.S. trade relationship

Letter to The Honourable Steven MacKinnon, P.C., M.P., Minister of Labour and Seniors and The Honourable Anita Anand, P.C., M.P., President of the Treasury Board regarding labour distruptions at British Columbia and Montreal ports.

Dear Ministers,  

On behalf of Canada’s leading employers, I am writing to express our deep concern with the labour disruptions occurring at ports in British Columbia and Montreal.  Unfortunately, these disruptions are not isolated events.  Rather, they are a continuation of a series of highly damaging recent labour disputes that continue to weaken Canada’s economy and tarnish its reputation as a reliable trading partner. 

Earlier today the Business Council of Canada joined more than 100 organizations in calling on the government to use every tool at its disposal to resolve the dispute at ports in British Columbia.  I am now writing you separately to urgently call for a specific solution. The federal government should immediately use its authority under Section 107 of the Canada Labour Code to direct the Canada Industrial Labour Relations Board to assist the parties in reaching a settlement by imposing binding arbitration and requiring workers to return to work and resume port operations. 

The national interest is clear. More than 60 per cent of Canada’s GDP is driven by trade.  Work stoppages paralyze our trade-dependent economy at a time when the country desperately needs revenue.  The disruptions in western Canada alone jeopardize the flow of $800 million of goods daily in addition to creating economic harm caused by the near-term possibility of plant shutdowns, reduced inventories and fewer working hours for Canadians.   

Implications for the rail-based supply chain are also severe – each day of stoppage creates network congestion that requires roughly a week to clear up, compromising thousands of Canadian jobs and businesses.  Further, Canada’s ports will continue to lose market share if the country’s reputation for labour instability isn’t corrected soon.  

Business leaders are deeply concerned about how labour disruptions are weakening our relationship with our most important trading partner, the United States.  Yesterday the Prime Minister revived the cabinet committee dedicated to Canada-U.S. relations following President Donald Trump’s re-election, while earlier this year the government announced a “Team Canada” approach to strengthen Canada’s negotiation position in advance of the renewal of the Canada-United States-Mexico Agreement (CUSMA) in 2026.  Prolonged labour disputes at our ports undermine the government’s efforts to work more effectively with the U.S. and weaken Canada’s credibility as a signatory to CUSMA.  

Canadian business leaders support the collective bargaining process and recognize that the best agreements happen at the negotiating table. However, we remain concerned that the processes underway at Canadian ports are failing and that the parties could be several days away from negotiating an agreement.  Time is not our friend when jobs, the economy and our valued trading relationships are on the line. 

Yours very truly, 

Goldy Hyder