The union that represents more than 700 supervisors in British Columbia accuses the workers’ employers of “acting recklessly” by threatening to impose an industry-wide lockout and close all ports in the province by 8 a.m. Pacific Time on Monday.

Frank Morena, president of International Longshore and Warehouse Union Local 514, said the BC Maritime Employers Association (BCMEA) publicly published a final offer Saturday, aspects which, according to the BCMEA, “could change if the negotiations drag on and if the economic or inflationary landscape continues to change”.

More specifically, the employers’ association has listed four elements at risk.

They include retroactivity on salaries, improvements in social protection and other social benefits, a signing bonus and the maintenance of the “4/3 salary ratio between foremen and longshoremen”.

The offer itself proposes a 19.2 percent pay increase over the life of the four-year deal, from April 2023 to March 31, 2027.

It also includes a 16 percent increase in retirement benefits, a 10 percent increase in employer contributions to the welfare plan and a payment of approximately $21,000 for eligible employees, including back wages since the expiration of the contract.

Morena said the union would not sign a contract that risks removing existing parts of the collective agreement.

“BCMEA is demanding outlandish concessions, skipped the last mediation session, is unwilling to return to the bargaining table, and is considering shutting down the entire waterfront due to a union ban on overtime — it makes no sense — unless the BCMEA wants to create an unnecessary crisis to pressure the federal government to intervene,” he said Sunday.

Federal mediators on site for negotiations

Steven MacKinnon, Canada’s labor minister, said in a social media post Saturday that federal mediators were ready to help reach a deal to avoid a labor disruption at British Columbia’s ports.

MacKinnon said he has spoken with the BC Maritime Employers Association and the union about negotiations for their new collective agreement. He said both sides have a responsibility to reach an agreement, adding that “businesses, workers and farmers are counting on them” to reach an agreement.

The employers’ association and the union have been negotiating for more than a year and a half to renew their collective agreement which expired in March 2023.

On Thursday, the union issued a 72-hour notice for pressure tactics that would begin Monday at 8 a.m. Pacific Time.

The move prompted the employers’ association to issue a formal notice saying it would “defensively” lock out union members from the same time.

Earlier on Sunday, the employers’ association said it had “no further developments to report.”

“BCMEA’s final offer remains open and, if accepted by the union, would avoid an unnecessary strike,” he said in an email.

The Port of Vancouver – Canada’s largest – has recently experienced a number of disruptions due to labor disputes, including multi-day pickets at several grain terminals in September and a work stoppage involving the two major companies. Canadian railways in August.

Hundreds of millions at stake

Industry experts say the pressure moves could shut down the entire West Coast port system and put hundreds of millions of dollars in trade a day at risk.

Last year, a 13-day strike by port workers halted billions of dollars in trade, affecting docks across the country.

Jasmin Guénette, vice-president of national affairs at the Canadian Federation of Independent Business, said small businesses are caught in the crossfire.

“Many small businesses are unfortunately experiencing financial losses, they may be losing sales, some businesses may be losing inventory.”

Guénette indicated that the federation is asking the federal government to make ports an essential service so that they “remain fully operational at all times.”

Trevor Heaver, professor emeritus at the Sauder School of Business at the University of British Columbia, said the disruption, if prolonged, will force the industry to play catch-up once the two sides reach an agreement .

“Neither manufacturers nor consumers who go to the store will see the effects immediately, but if this continues, inventories will decline and both manufacturers and consumers will feel the effects,” he said.