The Montreal Longshoremen’s Union has rejected the Maritime Employers Association’s (MEA) final offer for a new labor contract, triggering an immediate lockout. This dispute impacts nearly 1,200 workers at one of Canada’s most vital trade gateways.
The MEA announced that the lockout took effect at 9 p.m. Eastern, effectively halting all longshoring operations. The timing couldn’t be worse—Canada’s import and export activities are already sluggish, with the Port of Montreal struggling under partial capacity. Compounding the issue, ongoing labor disputes on the West Coast have paralyzed key ports like Vancouver, further strangling supply chains.
The union, representing a workforce critical to handling the port’s 8.7 million metric tons of cargo managed in Q3 2024, dismissed the MEA’s offer with a resounding 99.7% vote against it. According to union adviser Michel Murray, the rejection wasn’t just about money—it was about principle. “If the MEA had respected the collective bargaining processes, solutions would have been found and a conflict at the Port of Montreal would have been avoided,” Murray stated.
Key terminals like those operated by Termont, which account for 40% of Montreal’s container traffic, were already shuttered due to strikes that started on October 31. Now, with the lockout in place, the entire port’s longshoring services have ground to a halt. Only essential non-longshoring operations remain active, leaving critical goods like canola oil and forest products in limbo.
The MEA’s final offer proposed a 3% annual salary hike over four years, with an additional 3.5% for the subsequent two years. But it’s clear that the offer didn’t meet the union’s expectations, signaling deeper rifts in negotiations. Meanwhile, West Coast ports continue to grapple with their own labor disputes, exacerbating delays and driving up costs across the entire supply chain.
With Canada’s two major coasts embroiled in labor unrest, businesses relying on the smooth flow of goods are left scrambling for alternatives. The question remains: how long can the country’s logistics network endure this dual-front disruption?
Source: reuters
