Canada moves to end labor disputes at port, cites economic damage

By David Ljunggren

OTTAWA (Reuters) -Canada on Tuesday moved to end labor disputes at the country's two biggest ports of Vancouver and Montreal, citing the economic damage and the potential for driving away trading partners.

The move marked the second time in a few months that the Liberal government has stepped in to end a dispute. In August it ordered an end to work stoppages at the country's two largest railway companies.

Labour Minister Steven MacKinnon said he had directed the country's labor relations board to order an end to the strike and impose binding arbitration.

"As the economic losses threaten the country and begin to mount, it is up to the government to ensure that ... we can get on with the economic life of this country and avoid layoffs and other carnage," he told a press conference.

"Canadians have a limited tolerance right now for economic self-harm."

The dispute - which MacKinnon said was affecting more than C$1.3 billion ($932 million) in value of goods every day - had already hit shipments of canola oil, forest products and other goods.

The Canada Industrial Relations Board, which is independent but takes direction from Ottawa, would take a few days to issue the relevant orders, MacKinnon said.

The left-leaning government favors solving labor disputes through collective bargaining, but MacKinnon said he had been forced to intervene after federal mediators reported the talks at Montreal and Vancouver were at an impasse.

The Montreal Longshoremen's Union rejected a final offer made for a new labor contract, leading to a lockout being declared. Exports of canola oil and forest products from West Coast ports, including Vancouver, have halted.

"These work stoppages are impacting our supply chain, hundreds of thousands of Canadian jobs, our economy and our reputation as a reliable international trading partner," said MacKinnon, who complained that employers and unions had not been acting urgently enough.



"I've directed the Canada Industrial Relations Board to order that all operations and duties at the ports resume and to assist the parties in settling their collective agreements by imposing final and binding arbitration," he said.

($1 = 1.3943 Canadian dollars)

Source: Investing.com