What you need to know about the B.C. port strike

As a strike by B.C. port workers continues, businesses large and small areraisingconcerns about how it will affect Canada's economy.

Industry organizations say the job action by 7,400 waterfront employees will back up shipments, deplete inventories and boost prices on goods in shorter supply.

Here is a look at some key questions on the B.C. port workers' strike and how it could affect your bottom line.

WATCH | What the B.C. port strikes means for Canada:

What the B.C. port strike means for Canada

1 year ago

Duration 3:45

Workers at ports across B.C. are on strike. We break down why it's happening and what it means for you and for Canada's economy.

Why are port workers striking?

Dock workers walked off the job Saturday before negotiations over wages, contracting out and automation hit an impasse.

The International Longshore and Warehouse Union (ILWU) Canada said its jurisdiction over maintenance is being eroded by the use of contractors. The employers' refusal to agree to "one sentence'' of a maintenance document marks a key sticking point, it said.

• Have a question about the port strike? Email bcasks@cbc.ca

The B.C. Maritime Employers Association(BCMEA) said Tuesday the union is trying to "aggressively expand'' its control of maintenance duties far beyond an agreement that the association argued has been "legally well established for decades.''

Which ports are affected?

The strike affects about 7,400 terminal cargo loaders and 49 of the province's waterfront employers at more than 30 B.C. ports, including Canada's busiest, Vancouver.

According to the BCMEAwebsite, memberterminals handled16 per centof Canada's total traded goods in2020,contributing$2.7 billion in national GDP.

The Vancouver Fraser Port Authority says the Port of Vancouver is home to 29 major terminals that connectCanada to 170 economies around the world and handles around one-thirdof Canada's trade in goods outside North America.

The port, which isabout the same size as the next five largest Canadian ports combined,enables the trade of approximately $305 billion in goods with port activities sustaining115,300 jobs, $7 billion in wages, and $11.9 billion in GDP across Canada.

The B.C. government says Prince Rupert on the province'snorthwest coast is home to Canada's third-largest seaport,handlingmore than 30 million tonnes of cargo annually.

What industries are affected?

Fraser Johnson, professor of operations management at Western University's Ivey Business School in London, Ont., describes the Port of Vancouver as a "gateway to the East."

"The big products would be household and consumer products, things like electronics, fashion, appliances, construction materials, cars coming in from Japan and Korea, car parts to be able to service cars at dealerships, equipment and machinery for businesses,"Johnson said.

Commoditiesthat go through the Port of Vancouver to Asian markets include potash, canola, wood pulpand sulphur, Jeff Nankivell, president and CEO of the Asia Pacific Foundation of Canada, told CBC's The Early Edition on Wednesday.

What does this mean for my bottom line?

Bob Ballantyne, senior adviser and past president at the Freight Management Association of Canada, said consumers could eventually see higher prices in sectors ranging from clothing to cars.

"The fact that so much in the way of retail goods come from [East Asia]these days from China and Vietnam and Korea means that retailers, and obviously then consumers, will be impacted by this in a big way,'' Ballantynetold The Canadian Press.

"The pinch will be felt very broadly across the entire Canadian economy.''

What is the impact on the Canadian economy?

Werner Antweiler, chair in international trade policy at the University of British Columbia's Sauder School of Business, estimates the economic toll will amount to at least $250 million per week.

"The first week or two, businesses are usually able to bridge quite fine. It gets increasingly worse after that, as some businesses will run out of inventory and cannot replenish it easily,'' Antweilertold The Canadian Press.

Trevor Heaver, professor emeritus at UBC's Sauder School of Business, says the strike will have industry playingcatch uponce port workers go back on the job.

"Think of the problems that are going to be faced by the railroads," he said. "They've got backlogs of containers to move withpeople in a rush, they've got bulk commodities that need to be moved, so there's going to be significant congestion-type costs subsequent to this and the longer it goes on, the worse that's going to be."

Dennis Darby, who heads the Canadian Manufacturers and Exporters trade group, says small and medium-sized businesses will be hurt most, since they have fewer resources.

What are the possible long-term effects of a prolonged strike?

Nankivell saidan extendedstrike could alterCanada's reputation in a competitive international marketplace.

He raisestheprospect ofbuyers of products that can be sourced elsewhere"looking to diversify their supplies away from Canada" in the event of an extended strike.

"It probably also ultimately has an impact on the price that Canadian exporters can charge for their products if there is a perception that there are risks attached to Canadian suppliers," he said.

Will the federal government force striking workers back to work?

Alberta's transportation minister has called on the federal governmentto recall Parliament to consider back-to-work legislation that would end a strike at B.C.ports.

Federal Labour Minister Seamus O'Regan said in a tweetthat federal mediators "continue to support" both sides in the negotiations.

"Collective bargaining is hard work, but it's how the best, most resilient deals are made," he said.

Mark Thompson, a professor emeritus of industrial relations at UBC, saysgovernment interventionafter just a few days of labour actionwould send the wrong message.

"The Trudeau government has been firm in dealing with labour disputes and saying they should be settled at the bargaining table, not in Parliament," he told CBC News.

Nankivell says it's critical for both sides to find a "durable solution" to their labour impasse.

"Typically those tend to come through a negotiated solution between the parties rather than an imposed solution, which might be a temporary fix," he said.