Dockworker strike at Canada’s biggest ports to fuel inflation

By Randy Thanthong-Knight & Robert Tuttle

Astrike at Pacific coast ports threatens to disrupt millions of dollars of trade and add inflationary pressures to the Canadian economy. t h e i n ternational Longshore and Warehouse Union representing more than 7,000 dockworkers went on strike s a turday morning after federal-mediated negotiations overnight failed. t h e strike is poised to affect activities at maritime hubs in British Columbia, including the Port of Vancouver and Port of Prince r u pert, the country’s No. 1 and No. 3 busiest. t h ese ports are vital to exports of natural resources and imports of raw materials and food products. t h e stoppage shows workers are unbending in their demand to re - coup purchasing power lost over the past two years. t h e unrest is adding to wage pressures and disrupting supply chains, driving up costs for businesses and prices for consumers, while potentially stalling progress in cooling inflation.

A quarter of Canada’s total traded goods flow through these western ports, representing more than C$800 million ($604 million) worth of cargo each day. t h e disruption will have a knock-on effect to the rest of the economy, r o bin Guy, vice president of the Canadian Chamber of Commerce, said in an interview. e v ery piece of Canadian industry if they’re moving products, chances are it’s going through the west,” Guy said. “ i t ’s going to fuel inflation, which is also going to make it harder on the economy and the pocketbooks of everyday Canadians.” t h e longer the work stoppage drags on, the more impact it would have on the economy, according to Omar Allam, a global trade adviser and former Canadian trade official. i n 2021, a strike at the Port of Montreal, Canada’s second biggest, led to a loss of up to C$25 million per day, and this strike would have a bigger impact due to the scale of disruptions. “ t h ere’s a lot of stake here, and there’s a lot of leverage that dock - workers have at the negotiating table,” Allam said. “History shows that these negotiations are frequently difficult, and it includes service disruptions that could really impact supply chains and delivery schedule.” t h e union announced their intention to strike earlier this week after talks with employers for a new contract failed, saying it “has run out of options at the bargaining table.” Bloomberg News