Rippling effects of B.C. port lockout could reach Calgary businesses

November 7, 2024 Canuck

Some Calgary business owners are concerned that the waves from a labour dispute on the West Coast could delay their orders and chill the spirits of their customers.

On Monday, the International Longshore and Warehouse Union Local 514 was set to begin limited job action — an overtime ban and a refusal to implement tech changes if an agreement was not reached.

Instead of pushing the B.C. Maritime Employers Association (BCMEA) closer to a deal, it pushed the association to impose a lockout to the more than 700 unionized workers at ports across the province, shutting down most shipping on the coast.

On Wednesday, the BCMEA said there had been no engagement with the union or federal mediators since it locked out workers.

According to the Greater Vancouver Board of Trade, about $800 million worth of shipping goods passes through West Coast ports each day.

Business owners on edge

Emma May, the founder and CEO of e-commerce fashion brand SophieGrace with showrooms in Calgary and Vancouver, could miss out on sales at a key time of year — around Black Friday and Christmas — when a rise in sales can help keep her business afloat in the quieter months.

She said a shipment of apparel arrived at the Port of Vancouver at the beginning of the week and has been stuck since then, unable to be offloaded.

“If we can’t get [customers] their products, we’re facing the possibility that people will seek returns from us and we’re a small business, and that hurts,” May said.

“When things like this, that you really can’t control, start impacting you, it starts making you wonder, like, ‘is this the best jurisdiction to be doing business in?'”

A man stands beside two Japanese-made vehicles — Brian Stephenson, the owner of B-Pro Auto JDM Imports, said he’s received calls from customers concerned their vehicles could be delayed because of the worker lockout at B.C. ports. (Submitted by Brian Stephenson)

Brian Stephenson, owner of B-Pro Auto JDM Imports, said he’s been taking calls and messages from customers who are anxious their cars could be among the shipments that will not make landfall.

“I have some customers that order their vehicles from Japan and they want to pick them up in Vancouver — they may live in other provinces — so it kind of puts their travel plans in limbo,” said Stephenson.

And, if the cars are brought into Vancouver, how will backed-up queues affect the time it takes to process them?

“Unfortunately, I have to say, I don’t know.”

Stephenson said that, in his 14 years of bringing in vehicles, labour disputes have typically been resolved quickly. He’s hoping this lockout follows that trend, and is optimistic it will. But he said port workers ought to be considered an essential service.

Other businesses have already had their shipments arrive but are hoping the dispute doesn’t stretch to the Christmas season when demand will rise.

Labour disputes could cut into supply chain trust

The lockout is among several recent contract disputes that have hampered Canada’s supply chain: a rail stoppage in August and intermittent strikes by Montreal dockworkers in early and late October.

When dock workers in B.C. were locked out this week, Calgary Chamber of Commerce President and CEO Deborah Yedlin thought of those past snags to Canada’s supply chain.

“My first reaction was ‘not again,'” she said.

“We are a trade-exposed jurisdiction. The importance of the port system on the West Coast can’t be underestimated.”

Yedlin is concerned with the frequency of supply chain disruptions and how that could affect trade agreements, like the Canada-United States-Mexico Agreement set to be renegotiated in 2026.

Greg Wilson, the director of government relations for the Retail Council of Canada, said frequent labour disputes also leads local businesses to lose confidence in the nation’s supply chain.

If that container is delayed, business owners will also have to pay storage or extra shipping costs.

Wilson said the federal government had a heavier hand in the resolution to the rail worker labour dispute, when it ordered binding arbitration between the parties. He said it does not appear Ottawa is as concerned about the port dispute.

“If you’re a small business and your container is stuck, you are right now deeply frustrated that the federal government hasn’t gotten the two parties back to the table,” he said, noting that doesn’t mean forcing a settlement or an end to the strike.

I am closely monitoring the negotiations on the ports in British Columbia and Montreal.<br><br>Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved.<br><br>Public services, such as ports, exist to serve the needs of…

—@stevenmackinnon

On Thursday, federal Labour Minister Steven MacKinnon posted to social media that he is “closely monitoring the negotiations on the ports in British Columbia and Montreal.”

“Both sets of talks are progressing at an insufficient pace, indicating a concerning absence of urgency from the parties involved. Public services, such as ports, exist to serve the needs of Canadians. It is with this in mind that the federal government supports these negotiations.”

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