Canada's Labor Minister resolves coast-to-coast port labor conflict, compelling unions to return to work.

• The Canadian Labor Minister has employed federal powers twice this year to compel union workers to return to the docks, effectively ending strikes and lockouts.
• In recent weeks, work stoppages at the ports of Vancouver, Prince Rupert, and Montreal have resulted in a backlog of cargo containers that will take weeks to clear.
• According to U.S. Census data, $572 million in container trade arrives daily in the U.S. from Canada.

The Canadian Labor Minister, Steven MacKinnon, has invoked federal powers to put an end to work stoppages at the ports of Vancouver, Prince Rupert, and Montreal, and has ordered binding and final arbitration between labor unions and port ownership.

The key U.S. northern trade partner has been affected by strikes by unions and ports ownership lockouts on both coasts. Vancouver and Prince Rupert have been shut down since November 4, while Montreal dockworkers were locked out by ports management on Monday.

The congestion in the container supply chain has been caused, and it may take several weeks to resolve.

"The Retail Council of Canada stated that the disruption caused by disputes in retail supply chains was severe, particularly during their busiest time of the year. The ripple effects will continue to be felt, and it may take weeks for the sector to recover. However, Canadians can be assured that they will continue to receive all their essential retail goods in the days ahead."

The recovery of U.S. trade from the Vancouver and Prince Rupert ports in Canada, where strikes have been ongoing since the ILWU Local 514 contract expired on March 31, 2023, will take weeks. Approximately 20% of U.S. trade arrives in these ports, and the union leadership and industry representatives were unable to reach a deal before the cooling-off period expired.

The U.S. Department of Transportation reports that rail cross-border trade between Canada and the U.S. accounts for 14% of the total bilateral trade of $382.4 billion in the first half of the year. According to U.S. Census data, approximately $572 million in container trade arrives daily in the U.S. from Canada.

MacKinnon stated at a press conference that negotiations had reached a "total deadlock" and the measure was necessary to prevent any economic and reputational harm to Canada.

MacKinnon stated that if the work stoppages continue, the consequences will intensify, jeopardizing our reputation for dependability, and putting at risk more than $1.3 billion in daily goods value.

Mackinnon has intervened twice in recent months to halt strikes, using his authority under section 107 of the Canada Labor Code to order binding arbitration. In August, he resolved the lockouts at  and  by referring negotiations to the Canada Industrial Relations Board.

Pending a new deal, existing collective agreements will remain in place between dockworker unions and the ports.