Question Period Note: A REVIEW OF STRUCTURAL ISSUES AT CANADIAN PORTS UNDER SECTION 106 OF THE CANADA LABOUR CODE

About

Reference number:
Lab_Jan2024_008
Date received:
Sep 18, 2023
Organization:
Employment and Social Development Canada
Name of Minister:
O'Regan, Seamus (Hon.)
Title of Minister:
Minister of Labour

Issue/Question:

What is the purpose of the section 106 review of Canadian ports?

Suggested Response:

This Government supports the collective bargaining process and knows that the best deals are the ones made at the table.

The West Coast Ports strike in the summer of 2023 caused significant and immediate damage to the Canadian economy and Canadians.

I believe there could be some structural issues that might have inhibited the parties from reaching an agreement in a timely manner.

I am initiating a review under section 106 of the Canada Labour Code (Code) to examine the structural issues underlying this dispute and similar labour disputes at ports across Canada.

This should help us develop long-term solutions that create a harmonious working environment between unions and employers, respect the collective bargaining process and secure the fundamental stability of Canada’s supply chains.

Background:

West Coast Ports Dispute

The recent labour dispute between the International Longshore and Warehouse Union – Canada (ILWU) and the British Columbia Maritime Employers Association (BCMEA) involved a 13-day strike at the West Coast Ports in July 2023 that caused serious disruption to the Canadian economy and supply chain. The work stoppage shut down major operations at 30 West Coast ports, including the Port of Vancouver, which is the third-largest port in North America in terms of volume and the largest port in Canada.

The West Coast Ports strike caused serious disruptions to the economy and created significant obstacles to the movement of goods. This added to existing challenges for Canada’s economy, including supply chain volatility, wildfires, and labour shortages. The dispute impeded the movement of cargo valued at around $10 billion in total, significantly impacting Canadian supply chains in all regions of the country. The most impacted industries were transportation and warehousing, construction, manufacturing, natural resources, and retail trade.

Section 106 of the Canada Labour Code

On August 9, 2023, the Minister of Labour and Seniors issued a statement indicating that he would initiate a process under section 106 of the Code to examine the structural issues underlying recent labour disputes at ports in British Columbia and similar disputes at ports across Canada.

This examination will support the development of long-term solutions that create a harmonious working environment between unions and employers, respect the collective bargaining process and secure the fundamental stability of Canada’s supply chains.

Section 106 of the Code provides the Minister with the power to make inquiries regarding matters that may affect industrial relations.

Section 106 is the same authority that the Minister used to establish the Sims Task Force in 1995, which was the last major review of Part I (Industrial Relations) of the Code. Also in 1995, Jamieson and Greyell were appointed under sections 106 and 108 of the Code to conduct an industrial inquiry commission (IIC) into industrial relations at West Coast Ports.

Additional Information:

None