Port of Montreal longshore workers picket outside the Viau terminal, in Montreal, on Sept. 30.Christinne Muschi/The Canadian Press
Dockworkers at the Port of Montreal have halted all overtime work in a pressure tactic targeting management as contract talks continue.
The overtime strike by the union representing nearly 1,200 longshore workers at the port kicked off as planned at 7 a.m. EDT on Thursday, the Maritime Employers Association (MEA) confirmed.
The union has said scheduling remains a key stumbling block in the bargaining sessions, which resumed last week alongside federal mediators. Unpredictable shifts as well as reduced use of senior forepersons during operations are the major concerns, according to the union local, affiliated with the Canadian Union of Public Employees.
“We’re ready to negotiate intensively, but since the employer is dragging his feet, we’re putting a little pressure on him to devote his energies to finding a solution,” said union spokesperson Michel Murray earlier this week.
The MEA struck back, warning that employees assigned to shifts with incomplete crews will not be paid because they slow or halt the flow of freight.
The association, which represents shipping companies and terminal operators, said the freeze on overtime work will have a big impact on operations.
“The MEA believes that the systematic refusal of overtime will have significant repercussions on the port’s activities – even to the point of stopping operations – and, by extension, on businesses, industries and the public,” the group said in a statement Wednesday.
The limited job action comes after a three-day strike last week at two terminals that handle 41 per cent of container traffic at the country’s second-largest port.
Shipping companies may already be looking to mitigate the cost of potential cargo delays and rerouted vessels.
On Tuesday, Danish shipping giant Maersk announced it will slap a surcharge of $2,000 per container on Canada-bound freight from Europe.
Distributors and retail outlets worry they as well as consumers will bear the cost.
“A couple of grand on a box that’s only $4,000 or $6,000 is a pretty hefty premium,” said John Corey, president of the Freight Management Association of Canada, whose members include port authorities, manufacturers and other large shippers such as retailers Canadian Tire and Home Depot.
As companies seek other routes to market, fewer containers may be available to Canadian shippers, resulting in potential supply chain snarls and price hikes.
“Boats are going to be rerouted either to Vancouver or Halifax. It then causes crowding there,” said Lisa McEwan, co-owner of Hemisphere Freight, a customs brokerage firm.
Backlogs and labour disruptions tend to cause vendors and carriers to think twice about shipping as much cargo, she noted.
“They don’t send as many containers over because it’s going to take time for them to get those containers back,” Ms. McEwan said.
“If there’s less availability, then prices increase for shipping. That trickles down to the consumer and the importers and the shippers as well.”