Labour board to rule on impasse at B.C. ports as union fights contracting out

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The anticipated ruling by the Canada Industrial Relations Board into the impasse at B.C. ports will focus on whether it’s still possible to forge a negotiated deal despite a gulf over the issue of contracting out, as the deadlock threatens another strike and renewed economic upheaval.

Federal Labour Minister Seamus O’Regan asked the board to intervene on Saturday, hours after the union announced that eligible voting members rejected the mediated tentative deal that their leadership agreed to on July 21.

He wants the labour board to quickly determine whether the possibility of a negotiated settlement has been eliminated, given the rejection by the membership.

“If the board determines that to be the case, I have directed them to either impose a new collective agreement on the parties or impose final binding arbitration to resolve outstanding terms of the collective agreement,” Mr. O’Regan said in a statement. “Our economy cannot face further disruption from this dispute.”

Ottawa seeks relief under labour code after union members at B.C. ports reject tentative deal

A timeline of the B.C. port workers strike over the past month

Both the union and the employers have characterized the issue of contracting out as the major sticking point. The two sides disagree over the proposed language governing the definition of what constitutes regular maintenance historically performed by unionized workers.

About 7,400 members of the International Longshore & Warehouse Union Canada (ILWU) halted their 13-day strike on July 13 and then staged a 24-hour walkout several days later. The labour board ruled that the walkout lacked the required 72-hour strike notice, and ordered the workers to drop their picket lines.

Business groups have urged the federal government to recall Parliament to introduce back-to-work legislation in the event of the situation escalating again into a strike.

The Canadian Chamber of Commerce and the Business Council of Canada issued statements on the weekend, saying the country’s reputation as a reliable trading partner has been damaged. The upheaval to Canada’s supply chain, including trains and trucks, halted the flow of a wide range of products such as imports of consumer goods and exports of raw materials.

Conservative Leader Pierre Poilievre sent a letter on Sunday to Prime Minister Justin Trudeau, blaming the Liberal government for the protracted labour dispute. “Fire your incompetent Labour Minister and appoint a replacement,” Mr. Poilievre said.

The BC Maritime Employers Association (BCMEA) argues that the union is seeking to expand its jurisdiction beyond what has been customary for decades for regular maintenance at terminals.

In sharp contrast, the union warns of what it sees as a threat to its membership base whenever employers call in third parties.

About 6,000 of the ILWU’s members are in the Vancouver region, 1,000 in the Prince Rupert area in northern B.C. and the rest on Vancouver Island.

Workers who operate equipment for moving cargo are ILWU members, and so are employees who conduct regular maintenance on that equipment such as engineers and mechanics.

But when a roof needs to be replaced, for example, employers call in a third party that specializes in roofing, or if rails need replacing, then railway-yard companies are called.

Employers already made huge profits during the COVID-19 pandemic, and now they are demanding to continue outsourcing maintenance work to mostly non-union contractors, according to a report commissioned by the ILWU and released earlier this month by Jim Stanford, economist and director at the Centre for Future Work.

“In past years, a few terminals have manipulated skill classifications, dispatch practices and technology to bypass ILWU bargaining units – avoiding union wages, benefits and protections,” Mr. Stanford said.

Collectively as an industry, B.C. terminals have faced challenges in general in attracting and retaining skilled trades, including electricians and heavy-duty mechanics.

The BCMEA said in a statement Friday night that the mediated four-year proposal includes “measures to improve training, recruitment and retention of ILWU trades workers now and in the future.”

As well, it said employers have “agreed to provide benefit coverage for all casual trades workers, a new tool allowance and a commitment to increase apprentices by a minimum of 15 per cent.”

The BCMEA, which represents 49 private-sector companies such as shipowners and terminal operators, ratified the mediated proposal on July 13. On that same date, the union’s bargaining committee approved the tentative pact to initially end the strike.

Days later, the union’s caucus, consisting of representatives from five longshore locals, rejected the tentative deal, only to change its position on July 21 and approve the package, clearing the way for ratification voting by the membership. The way the process unfolded exposed a gap in positions between the caucus and the negotiating team.

The Greater Vancouver Board of Trade estimates that work stoppages in July led to the disruption of nearly $10.7-billion worth of goods, based on a rate of $800-million a day.

“The next steps are unclear but if strike action recommences the economic damage will only increase,” board of trade president Bridgitte Anderson said in a statement.

Eligible ILWU members cast their ballots last Thursday and Friday. They turned down the agreement drafted by a federal mediator, who recommended the deal after talks stalled at the bargaining table. The voters at the five longshore locals did not include casual workers, who make up a large portion of the work force.

“The critical issue is the practice of contracting out maintenance work that poses a significant threat to job security and the integrity of the ILWU work force,” union president Rob Ashton said in a statement on Sunday.

On Friday night, the BCMEA confirmed the mediated proposal’s details, which were first reported by The Globe and Mail. The wage increases total 18 per cent over four years and work out to a compounded wage hike of 19.2 per cent.

The BCMEA said the median annual income for full-time longshore workers would rise to $162,000 a year, starting in the fourth year of the proposed contract, compared with $136,000 in 2022, not including benefits and pension.

A signing bonus, or “inflation adjustment allowance,” would be about $3,000 for a full-time worker, according to the mediated plan drafted by Peter Simpson, director-general of the Federal Mediation and Conciliation Service.

There is also a $15,000 increase, or 18.5-per-cent boost, to a retirement fund that currently has an $81,250 lump-sum payout for eligible new retirees, under the mediated deal.

The ILWU listed contracting out as one of its three key issues. The other two main concerns are cost-of-living wage increases and the impact of automation on job security.

During collective bargaining, employers proposed training programs to address shortages of skilled trades. The BCMEA recommended an independent arbitrator be appointed to chair a subcommittee that would have employers sit down with officials from the waterfront union to discuss contracting out.

The union said it is dissatisfied with what it deems to be inadequate job protection for members currently and into the future.