Thank you very much.
Good morning, Chair, vice-chairs and members of the committee.
I'm presenting today from the traditional territory of the Musqueam, Squamish and Tsleil-Waututh nations.
On behalf of our membership of over 5,000 businesses, I thank you for the opportunity to discuss the significant economic impacts of the 13-day strike this summer at Canada's west coast ports. This strike, the longest in almost four decades, unfolded against the backdrop of years of challenges in the supply chain, largely, outside of our control. The cumulation of these events impacted Canada's image and role as a stable partner in the global supply chain.
In March of 2020, the pandemic's effect began a tidal wave of imbalances in container trade as factories around the world shut down, leading to shortages, scarcity and hoarding. In July of 2021, wildfires damaged rail lines and brought train shipments to a grinding halt. In November of 2021, an atmospheric river caused billions of dollars in economic damage to two class I rail links and highway systems, which have been heroically rebuilt. These events highlight the extreme pressure that fuelled inflation and caused economic stress, some of which we were able to control and some of which we were not.
We know that we need to build climate resiliency into the supply chain, and our members are investing to do just that. These investments in our resiliency and growth will mean good-paying and often union jobs.
Against this backdrop, we were concerned in the months leading up to July 1 about what the short-term and long-term economic harm of a strike at the ports of Vancouver and Prince Rupert could be. We communicated to government and port-reliant industries about the damage that could occur if the strike shut down the ports. Regrettably, those fears came to fruition with a coast-wide strike on Canada Day.
During the strike, we launched a port shutdown calculator, a tool designed to visually depict the magnitude of trade disruption. The numbers were staggering, with 800 million dollars' worth of trade being disrupted each day. Our calculator estimated the value of trade disrupted to be a remarkable $10.7 billion.
This disruption reverberated across critical sectors nationwide, from manufacturing and retail to agriculture, energy and automotive dealers. Small businesses ran out of building and construction materials needed to build homes for Canadians. Local car dealers were awaiting shipments of vehicles and parts. Exporting industries lost their ability to move their products to market, making it more difficult to secure the global contracts that drive investment and employ Canadians. Pulp mills stood silent. Mining operations, as you heard, were curtailed, and businesses across Canada faced increased costs and prolonged wait times for goods. Moreover, the rerouting of goods destined for Canada to alternative ports not only incurred additional costs and delays for businesses but also needlessly amplified the environmental footprint of our trade.
While the strike unfolded in B.C., the effects were felt nationwide. We think of the port of Vancouver as “Canada's port”, for it moves as many goods as the next five largest ports combined, single-handedly accounting for approximately 25% of Canada's total traded goods. This means that long-term disputes like the ones we experienced this summer have far-reaching consequences that affect the entire nation.
Billions of dollars in goods bypassed Vancouver for other ports, especially Seattle and other U.S. and Mexican ports, as port swaps and diversions increased. All of this cost Canada. Businesses were unable to adequately plan their operations and staffing without knowing if the ports would be open from one minute to the next. This was made worse by the back and forth of strike action.
Throughout the strike and the aftermath, we consistently urged the federal government to explore additional tools to facilitate lasting agreements during labour disruptions that affect the entire economy. The review initiated by the Minister of Labour, under section 106 of the Canada Labour Code is a key opportunity to do this.
In conclusion, I thank you once again for the opportunity to share insights into the impacts of the strike. We look forward to collaborating with the government to ensure that meaningful collective bargaining can take place without causing detrimental nationwide consequences to our economy and our reputation as a reliable and stable trading partner.
Thank you. I look forward to the questions and answers.