Mr. Speaker, the Port of Montreal is vital to the economies of both Canada and Quebec. It is the main point of entry for goods and materials that Canadians and businesses depend on, especially in Quebec and Ontario.
A partial work stoppage began at the Port of Montreal on April 13. On April 26, it became a full work stoppage. The Port of Montreal is the second-largest container port in Canada. Every year it handles over 1.6 million 20-foot containers and 35 million tonnes of cargo representing $40 billion in goods.
The current work stoppage is impeding the flow of $270 million per week in cargo through the port. It is also harming the transportation industry by imposing significant costs on Canadian businesses that use the port, for example through increased transportation costs and lost sales due to import and export delays, and it is affecting the livelihoods of thousands of Canadians whose jobs directly and indirectly depend on it.
Even before the strike action began, industries and businesses regularly shipping through the port began to make alternative plans. Due to this anxiety in the supply chain, there was a decrease in container volumes at the port worth $30 million per week for the month of March 2021 compared with the previous year. The initial partial work stoppage further reduced port capacity by approximately 30%, representing a loss of cargo volumes worth an estimated $90 million per week.
All of this comes at a time when industries are still struggling to recover from major economic disruptions over the past year. It is clear that the effects of this work stoppage, if it continues, would have an enormous impact on the Canadian economy. How did this happen? How do we find ourselves in these circumstances? Let me take a few minutes to explain how it came to this.
The employers here are represented by the Maritime Employers Association, or MEA. The MEA is a voluntary employers' association representing all maritime employers, including terminal operators, stevedoring companies and ship owners operating at the Port of Montreal. The MEA has the exclusive right to bargain on behalf of those employers in negotiations with the Syndicat des Débardeurs, also known as CUPE Local 375. CUPE Local 375 represents approximately 1,100 longshore workers. These workers are responsible for the loading and unloading of vessels and other related work at the Port of Montreal. Needless to say, their work is vital to the smooth operation of the port.
First of all, it is important to point out that the last collective agreement between the Maritime Employers Association and CUPE 375 expired on December 31, 2018. The two parties began negotiations to renew the collective agreement in September 2018, nearly four months before it expired.
The federal mediation and conciliation service has been working closely with the parties since October 2018. On October 23, 2018, the employer filed an application with the Canada Industrial Relations Board, or CIRB, under subsection 87.4(4) of the Canada Labour Code to determine which activities would need to be maintained in the event of a work stoppage at the port.
Neither of the parties could initiate a work stoppage while the board was considering what services needed to be maintained. Ultimately, the CIRB found that the parties did not have to maintain any activities in the event of a work stoppage beyond their statutory obligation under the Canada Labour Code to continue service to grain vessels. However, the CIRB did acknowledge the union's commitment to continue servicing two vessels that supply Newfoundland and Labrador.
The parties were legally entitled to begin a strike or lockout as of the date of the decision, provided they gave 72-hour notice. That is exactly what happened. Four work stoppages occurred in the summer of 2020, each greater in duration and impact than the last.
An unlimited general strike finally began on August 10, 2020. There was also increasing tension at the port. On August 13, 2020, eight people were arrested and charged with intimidation, mischief and assault following a confrontation between union members and managers who were replacing workers.
Eleven days later, on August 21, 2020, the parties agreed of their own accord to a seven-month truce during which they would keep bargaining and end work stoppages. That truce ended on March 21, 2021.
Throughout that time, the parties continued to receive intense mediation support from federal mediators. On February 4, 2021, two veteran federal negotiators were assigned to help with negotiations.
The Minister of Labour also wrote to the parties, urging them to work with the mediators to reach an agreement—