Port workers' strike in B.C. threatens Sask. agriculture producers, economy: experts - Action News
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Port workers' strike in B.C. threatens Sask. agriculture producers, economy: experts

A strike by port workers in British Columbia is causing concern for industry experts in Saskatchewan.

Producers who export grain in shipping containers could face backlog

A sign reading
An International Longshore and Warehouse Union worker pickets outside of the BC Maritime Employers Association Dispatch Centre in Vancouver, British Columbia on Monday, July 3, 2023. (Ben Nelms/CBC)

Theport workers' strike in British Columbia could have consequences forproducers and consumers in Saskatchewan, according to industry experts.

That's because the job action could disruptsupply chains, which is a big concern for people working inagriculture, said Jasmin Gunette, who is the vice president of national affairs at the Canadian Federation of Independent Business.

"Farm businesses that need to get their product out to the market may not be able to do so," Gunette said.

B.C. port workers with the International Longshore and Warehouse Unionwalked off the job Saturday morning.The strike affects more than 7,000 terminal cargo loadersat 30 ports.Their employer, the B.C. Maritime Employers Association,said bargaining attempts with a federal mediator had been unsuccessful so far.

Gunette said disruptions to the supply chain might alsomean that consumers will have to wait for products to reach shelves, which could add to the cost pressure in a time when people are already struggling to make ends meet due to inflation.

Bill Prybylski, who is the vice-president of theAgricultural Producers Association of Saskatchewan,said local grain that is transported in containers will be affected.

The containers are filledatelevators in Saskatchewan and then the containers are transported toships at the ports in B.C. from where they are exported to international customers.

"Any pulse growers and specialty crop growers, this is going to affect how they market their grain. Any disruptions in the movement of grain of any kind is certainly not good news for producers," Prybylski said.

"If the containers aren't able to be unloaded at the port onto a ship and sent to our customers, there'll be a backlog."

A red barn can be seen on a farm on a sunny day.
If the strike continues, and shipments get delayed, farmers could see cash flow issues. (Aishwarya Dudha/CBC News)

If producersare unable to deliver on their contracts because elevators are full, that couldcreate problems in cash flow for farmers who don't get paid until the grain is delivered.

"If the customers are waiting for the grain at the other end, it could hurt in the long run. Ifthey're not able to get the grains, they'll look elsewhere," Prybylski said.

A farm can be seen with grain elevators and a cloudy sky above it.
A strike by port workers in B.C. has entered its fourth day and is disrupting supply chains, particularly impacting grain farmers and the agriculture sector. (Aishwarya Dudha/CBC News)

Supply chain issues willfurther burdenthe provincial economy that's already struggling with inflation and high interest rates, said Keith Willoughby, who is dean of theEdwards School of Business.

"We're looking at a situation where $800 million per day is flowing through those ports," Willoughby said.

"So where it's going to be impacted for us here in the province on the consumer sideis any of our businesses that are importing goods from other countries could see items that are held up in port."

However, hesuggestedconsumers haveconfidence in the labour mediation process as both sides are sitting on the bargaining table.

He alsomentioned that this could be an opportunity for manufacturers to consider relying less on global imports and start manufacturing within the country.

"It's easier said than done, because it's a multi-billion dollar decision to onshore your manufacturing, but going forward is something that we as a province, as a country, are going to look at doing to ensure that we aren't susceptible to some of these supply chain issues."