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Government of Canada Intervenes in Labor Dispute

11/17/2024

The Minister of Labor, Steven McKinnon, has invoked Section 107 of the Canada Labor Code forcing striking workers at ports to return to work and to impose binding arbitration on unions and employers.

 

The Liberal Party government opted for intervention despite the reality of disaffection among union voters. The reality forced action recognizing the $1 million per day impact on the economy and disruption of supply chains.

 

Workers at the ports of Montreal, Quebec, Vancouver and other British Columbia trade portals will resume operations.  Since the strikes have been ongoing since the beginning of November, it will take weeks to clear the backlog of containers and especially containers that has affected movement between the U.S. and Canada.

 

The move by the government of Justin Trudeau was welcomed by the Retail Council of Canada and similar organizations, including importers and exporters in the U.S.

 

In justifying the action, Minister McKinnon stated that negotiations between unions and employers had reached a total impasse and continuation would impose economic and reputational damage to Canada.

 

Government intervention is similar to the action taken in August to force workers employed by Canadian-Pacific Kansas City and the Canadian National Railway companies to resume operations.