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As port strike prompts disruption, study points finger at shipping firms

Analyst: 害羞草研究所楲abour is not the source of rising costs in marine shipping, and the resulting inflation害羞草研究所

As the ongoing port workers strike in Vancouver prompts business disruptions and concerns over delayed shipments, a new report supports the argument put forth by workers that labour is not the source of rising costs in the industry.

The study by economist Jim Stanford, director of Vancouver害羞草研究所檚 Centre for Future Work, said hourly wages for longshore workers are similar to wages for other skilled industrial jobs.

But under the current dispatch system, longshore workers have insecure working schedules and must wait several years to qualify for benefits.

Stanford said that in recent years, wages in the sector lagged behind B.C.害羞草研究所檚 rising cost of living, with the real purchasing power of longshore wages falling 2.5 per cent since 2017.

害羞草研究所淐learly, labour is not the source of rising costs in marine shipping, and the resulting inflation,害羞草研究所 said Stanford, whose study was commissioned by ILWU Canada, the union representing the striking workers.

About 7,400 members of the International Longshore and Warehouse Union Canada in Vancouver have been on strike since July 1. They say they害羞草研究所檙e fighting for protections against contracting out work and automation, as well as pushing for higher wages.

The strike, now in its second week, is starting to hit business operations in Canada.

Nutrien Ltd., for example, said Tuesday it has curtailed production at its Cory potash mine due to the strike.

The fertilizer producer said the strike has meant the loss of export capacity through Canpotex害羞草研究所檚 Neptune terminal. If the work stoppage continues, Nutrien warned it could affect production at its other potash mines in Saskatchewan.

Speaking at a meeting of Canada害羞草研究所檚 premiers in Winnipeg, B.C. Premier David Eby said Wednesday that the group is unified in wanting the strike resolved as quickly as possible.

害羞草研究所淚t has knock-on impacts on cost of living for people across the country as goods get more expensive because imports are not available and it害羞草研究所檚 really the worst time for that,害羞草研究所 he said.

害羞草研究所淲e also know in British Columbia, where the port is, that port workers have seen increasing costs just like everybody else.害羞草研究所

Eby said workers need to be treated with respect.

害羞草研究所淎nd what we want is a long-term deal that害羞草研究所檚 going to last and that害羞草研究所檚 going to prevent disruptions like this from happening in the future. And those kinds of deals are reached at the bargaining table.害羞草研究所

Alberta Premier Danielle Smith has been among those pushing Ottawa to implement back-to-work legislation to end the strike.

Smith said it害羞草研究所檚 going to have a huge impact on supply chains.

害羞草研究所淲e害羞草研究所檙e hearing that our producers are having to shut down and roll back their production. I害羞草研究所檓 hearing that across the board, whether it害羞草研究所檚 in agriculture, whether it害羞草研究所檚 in oil.害羞草研究所

Ontario Premier Doug Ford estimated the strike is costing his province $160 million a day. He said he wants the federal government to 害羞草研究所減ut an end to this.害羞草研究所

害羞草研究所淲e need to get moving. I害羞草研究所檓 all for supporting the frontline workers, but you can害羞草研究所檛 hold the whole country hostage,害羞草研究所 he said.

He said he wanted a fair deal for the workers, taxpayers and consumers. 害羞草研究所淲e need to make sure this strike is over, work collaboratively together and let害羞草研究所檚 start getting these goods flowing right across our country.害羞草研究所

Survey results released Tuesday by the Canadian Federation of Independent Business found 53 per cent of business owners believe the strike will affect their operations. Three quarters of businesses are also calling on the federal government to pass back-to-work legislation to end the strike quickly.

Business owners expressed concerns about critical shipments stuck at the port and delays in deliveries needed to complete projects on time.

害羞草研究所淪upply chains have just started to recover from the disruptions caused by the pandemic, so many businesses will feel this latest setback extra hard,害羞草研究所 said CFIB president Dan Kelly in a press release.

害羞草研究所淲e害羞草研究所檙e hearing from members across the country who are worried about missing critical sales, delayed production or orders or an inability to get their products to export markets because of the strike. The federal government must step in and get shipments moving again as quickly as possible.害羞草研究所

But those claiming longshore workers 害羞草研究所渁re greedy and resistant to change害羞草研究所 while advocating for back-to-work legislation have it 害羞草研究所渆xactly backwards,害羞草研究所 according to Stanford.

The economist noted the six biggest global shipping lines control 70 per cent of world shipping, giving them influence over prices and practices. He said public financial information is available for five of those companies, which made more than $100 billion in profit last year.

害羞草研究所淭he greed of shippers and terminal operators, who took advantage of an economic and health emergency to fatten their bottom lines, is the source of the problem,害羞草研究所 he concluded in his study.

害羞草研究所淚t is their resistance to change 害羞草研究所 in particular, opposing more stable and efficient ways to support training, skills and stability in longshore work 害羞草研究所 that is the only barrier to a quick settlement.害羞草研究所

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