Question Period Note: ST. LAWRENCE SEAWAY STRIKE

Q1 – Shouldn’t grain continue to move like it did during the Vancouver Strike?

R1 - During the Vancouver port workers strike, bulk grain continued to move based on provisions of the Canada Labour Code.

The St. Lawrence Seaway Management Corporation has applied to the Canadian Industrial Relations Board for a ruling on whether provisions of the Code apply, such that grain can continue to be shipped through the Seaway despite the strike.

The strike began just after midnight on October 22, 2023. It includes 360 UNIFOR members in Ontario, and Quebec who operate 13 out of the 15 locks along the Seaway route. The main sticking point is wages.

The total value of goods going through the Seaway from both Canadian and American inland ports is estimated at close to $34 billion annually. As a point of comparison, it is estimated that approximately $305 billion in goods moves through the Port of Vancouver annually.

The strike has the potential to impact the harvest in Ontario in the relatively near term, as the grain system loads significant amounts of grain and oilseeds immediately on to vessels at terminals on the great lakes for export. Ontario farms have limited capacity to store their crops on farm and continue their harvesting operations. Usually about 6 million tonnes of Ontario grain moves through the Seaway each year. Further, the Seaway is a critical route for shipments of fertilizer for Ontario.

The Seaway is also a major export corridor for western Canadian grain. In the 2021-22 crop year, roughly 6 million tonnes of western Canadian grain moved through the Port of Thunder Bay, down from 8.3 million tonnes the previous year. According to the most recent statistics from Canada’s Grain Monitor, 1.4 million tonnes have moved through Thunder Bay in the first 10 weeks of the current crop year – roughly 22 percent of western grain exports to date.

During the Vancouver port workers strike, bulk grain continued to move based on Canada Labour Code section 87.7, which notes that “employees and their bargaining agent shall continue to provide the services they normally provide to ensure the tie-up, let-go and loading of grain vessels at licensed terminal and transfer elevators, and the movement of the grain vessels in and out of port.” The St. Lawrence Seaway Management Corporation has applied to the Canadian Industrial Relations Board for a ruling on whether provisions of the Code apply, such that grain can continue to be shipped through the Seaway despite the strike.

The Seaway generally closes due to ice conditions from January to mid-March each year, which means that time is of the essence for grain and fertilizer shipments.

• The Seaway is an important cargo route for Canadian agricultural exports and for the movement of critical inputs such as fertilizer.
• The Government continues to monitor the situation closely and is hopeful that a resolution can be reached to minimize supply chain disruption.
• The Government is committed to ensuring a reliable and efficient marine transportation system that supports the Canadian economy.

• The Government respects and has confidence in the collective bargaining process. The best deals are the ones reached by the parties at the bargaining table.