More Than Half of Small Businesses Say Port Strike Will Hurt Operations

International Longshore and Warehouse Union workers wave at cars driving past while picketing outside of the BC Maritime Employers Association Dispatch Centre after a 72-hour strike notice and no agreement made at the bargaining table, in Vancouver on July 1, 2023. (The Canadian Press/Ethan Cairns)

More than half of Canadian small businesses say the strike at the Vancouver Port will affect their operations, according to a survey by the Canadian Federation of Independent Business (CFIB).

“With no resolution in sight, three quarters of businesses (75%) are calling on the federal government to make ending the strike quickly a top priority,” CFIB said in a July 11 news release.

The results are preliminary from a survey that began on July 6 and will close on July 15, of 1,414 respondents.

“Supply chains have just started to recover from the disruptions caused by the pandemic, so many businesses will feel this latest setback extra hard,” said CFIB President Dan Kelly.

“We’re hearing from members across the country who are worried about missing critical sales, delayed production or orders or an inability to get their products to export markets because of the strike. The federal government must step in and get shipments moving again as quickly as possible.”

Meanwhile, U.S. dock workers are refusing to handle Canadian cargo that is being rerouted from Vancouver to Seattle, as the strike, which started on July 1, drags on.

International Longshore and Warehouse Union (ILWU) international president Willie Adams told CNBC that members of the U.S. West Coast chapter of the union won’t be unloading Canadian-bound cargo in solidarity with the striking workers in B.C.

Mr. Adams told a rally in Vancouver on July 9 that offloading Canada-bound cargo at Tacoma, Seattle, Oakland, or Los Angeles “ain’t happening.''

Canada Day Strike

Over 7,000 B.C. port workers represented by ILWU went on strike on Canada Day, affecting more than 30 B.C. ports. The strike has disrupted operations of two of Canada’s three busiest ports, the Port of Prince Rupert and the Port of Vancouver, which is where the majority of the country’s natural resources and commodities are exported, and raw materials are imported.

The workers union says employees want higher wages, plus protection against contracting out work and automation.

At the time, CFIB warned that a strike could have serious consequences for the economy and small businesses, during a time of high inflation.

The strike has directly impacted the world’s largest producer of fertilizer, Nutrien Ltd., which operates the Cory potash mine in Saskatchewan. On July 11, Nutrien announced it was being forced to reduce production due to loss of export capacity, and warned of further operation reductions if the strike is prolonged.

Meanwhile, the Bank of Canada is expected to increase the key interest rate on July 12 by 25 basis points to 5 percent, triggering even more inflation on top of supply-chain disruptions and fuel inflation.

According to the Canadian Manufacturers & Exporters (CME), the strike is costing about $500 million in disrupted trade daily, with a total estimated cost of $5.5 billion in 11 days.

“All manufacturing sectors are affected by the strike, from automotive, to energy, to parts manufacturers, to consumer goods. Hanging in the balance are the livelihoods of Canada’s 1.7 million manufacturing workers, their businesses, their customers, and the communities they support,” said CME in a July 4 statement urging the federal government to take action.

“A strike of this magnitude not only disrupts the Canadian economy but damages our global trading reputation, hurts already fragile supply chains, and puts jobs at risk,” said CME.

Federal Labour Minister Seamus O’Regan has urged the two sides to use mediators and resume talks, while governments in Alberta and Saskatchewan have joined with business organizations in calling for federal legislation to end the strike.