Shipments resume as Montreal port strike ends, but tensions linger

The union representing Montreal dockworkers has ended a three-day strike at two terminals as scheduled, but the potential remains for more job action and jammed supply chains in the coming weeks.

The Maritime Employers Association confirmed that the work stoppage came to an end at 7 a.m. on Thursday (Oct. 3) at the Viau and Maisonneuve terminals, which handle more than 40% of container traffic at the country's second-largest port.

The two sides have not met all week, with the union claiming that management refused a sit-down convened by federal mediators on Thursday.

"What is this employer up to? It denounces the effect of a partial strike on the economy and on the supply chain, but it doesn't deign to come to the negotiating table to find solutions," said Michel Murray, a spokesman for the union local, affiliated with the Canadian Union of Public Employees.

The employers association, which represents shipping companies and terminal operators, said there was no meeting planned and its aim remains a collective agreement hammered out through negotiations.

The Federal Mediation and Conciliation Service did not answer questions on whether a rendezvous had been scheduled or cancelled.

"At this time, we can confirm the mediators remain in contact with the parties and are continuing work to assist them in their negotiations," said spokeswoman Samuelle Carbonneau in an email.

Over the summer, two months passed after employers submitted a contract offer before the union responded, employer spokeswoman Isabelle Pelletier said.

"Clearly, the current mediation process is no longer producing results," she said in a statement Wednesday. "We are currently evaluating all the options available to arrive at a sustainable solution that reflects the reality of the situation."

The three-day job action by a quarter of the port's 1,200 loaders and checkers began Monday, one day before tens of thousands of dockworkers walked off the job at three-dozen ports in the United States, halting roughly half of the country's ocean cargo.

Many products that wind up on Canadian warehouse floors and store shelves arrived via U.S. ports, while some Canadian exports to the U.S. wend their way toward American ports to be shipped overseas.

In Canada, manufacturers and food distributors worry that a prolonged strike in the U.S.—or another work stoppage in Montreal—would cause backlogs and strand shipments of items ranging from apples to auto parts.

Fresh Taste Produce, an Ontario-based food importer, is awaiting a load of South African oranges now languishing on a dock at the Port of New York and New Jersey.

"We should be OK for a week, but I'm not sure," said Lyda Gonzalez, import co-ordinator at the company.

It also imports apples from Chile and kiwis from Italy, which arrive on pallets via Montreal. Like many outfits, Fresh Taste Produce arranged for extra inventory ahead of the partial strike, but worries that more job action would result in rotten cargo.

Manufacturing companies also operate on tight timelines with just-in-time inventory strategies.

A lack of shipping alternatives also creates headaches during supply chain disruptions. 

"You can't really move iron ore or bauxite any other way," said Dennis Darby, CEO of the Canadian Manufacturers and Exporters industry group.

Machinery, mechanical appliances and transportation equipment comprised more than 39% of U.S. exports to Canada in 2021, according to the U.S. Office of Technology Evaluation.

Meanwhile, manufactured goods or components amounting to about $50 million a day leave the country via the Port of Montreal, Darby said, noting the potential for backups should a second strike occur.

The dockworkers union must issue a 72-hour notice before walking off the job. The strike mandate ratified by members on Sept. 25 remains valid for 60 days.