The FMA is not an industry-specific association. It has a focus on freight transportation by all modes of transport—air, marine, rail and truck—that impact the supply chains of companies in all industries. We have agriculture, mining, manufacturing, food processing and retail companies within our membership. Some of our retail members are household names.
In addition, the FMA is the Canadian member of the Global Shippers Forum. Through that relationship, we are involved in dialogue with various UN agencies that impact global trade, such as the International Maritime Organization.
The term “supply chain” is a good metaphor for the complex relationships of all stakeholders involved in moving goods from origin to destination. With the growth of international trade, these chains have become ever more complex. A chain is only as strong as its weakest link. If one of those links is broken, the entire chain is impacted.
As this committee is focused on Canada’s international trade, it becomes obvious that a work stoppage at a major “link” in the chain, like the port of Vancouver, will broadly impact the Canadian economy and Canada’s international customers. It can also have potential impacts on the health and safety of Canadians.
While the FMA respects the rights of workers, there has to be consideration of the resulting impacts of work stoppages in many industries that are critical to the functioning of the Canadian economy and Canadian society. How do we balance the rights of approximately 7,000 west coast port workers with the rights of millions of Canadians across the country, including other unionized workers?
The Canada Labour Code goes some distance in attempting to look at this conundrum. Here are a couple of the items.
The first is essential services. Subsection 87.4(1) of the Canada Labour Code requires that, during a strike or lockout, the employer, the trade union and the employees “must continue the supply of services, operation of facilities or production of goods to the extent necessary to prevent an immediate and serious danger to the safety or health of the public.” The second one is subsection 87.7(1), which requires the longshore industry to service grain vessels during a strike or lockout.
Regarding essential services, a case can be made that these should be expanded beyond the “immediate and serious danger to the safety or health of the public.” The major impacts on Canadian society of broken links in the supply chain caused by port and rail labour disruptions are such that Parliament should look at expanding the “essential services” definition to address these widespread and major impacts.
Also, while it's appropriate that grain vessels should continue to be serviced during a strike, it is time to consider extending this requirement to other commodities and industries, as my colleague Lauren already mentioned.
In preparing for this meeting, FMA reached out to a number of its member companies regarding the impacts they have experienced. Many of our importer members report that they have had to commence taking action in advance of a possible supply chain strike. This can add significant cost. If delayed products are seasonal or time-sensitive, it can result in lost sales and revenues.
Canadian prosperity depends on our international trade, and labour disruptions are one of several issues impacting Canada’s reputation as a reliable trading partner. In addition to strikes, we have seen floods and fires in western Canada that have impacted rail and trucking services in some areas. There have been instances of blockades of rail services by people protesting various issues across the country.
FMA obtains information each year from the Canada labour program on expiring transportation labour agreements. The 2023 list includes the west coast longshore agreement and the St. Lawrence Seaway agreement, which both expired on March 31. As mentioned, these agreements were not settled without strikes. It's also worth noting that, on December 31—about three weeks from now—the longshore workers contract at the port of Montreal ends, as do five railway agreements with CN, CPKC and Ontario Northland. Those will be expiring at the end of this month.
FMA is pleased to see the committee looking at these important issues, and we think it would be useful for Parliament to extend its consideration of labour relations to all of the links in the Canadian supply chain.
Thanks for the opportunity. I'm pleased to try to answer questions.