Madam Speaker, it is a pleasure to see all my hon. colleagues this evening during the very important debate. I would like to inform the House I will be splitting my time with my hon. colleague and friend, the member of Parliament for Alfred-Pellan.
The government is aware of the serious harm and potentially long-lasting effects to the Canadian economy being caused by the ongoing work stoppage at the Port of Montreal. It is also aware that the work stoppage is jeopardizing the economic recovery from the COVID-19 pandemic and its associated lockdowns. We know that Canadians need the parties to find a resolution as quickly as possible. Nothing about the collective bargaining between CUPE Local 375 and the MEA, the Maritime Employers Association, has been quick.
The parties have been negotiating the renewal of their collective agreement for approximately 30 months now. During this time, they have engaged in protracted litigation to determine which activities needed to be maintained in the event of a work stoppage, held over 100 bargaining sessions supported by federal mediators and had multiple work stoppages.
Despite this long history and the ongoing work stoppage at the Port of Montreal, the parties have been unable to resolve their differences and conclude very importantly a new collective agreement. That is why the government is left with no other choice but to introduce legislation that will end the ongoing work stoppage and prevent further disruptions, resolve all matters that are in dispute between the parties, and establish a new collective agreement.
The government does not take this decision lightly, but we must act in the best interest of Canadians and Canadian businesses. The Port of Montreal is the second-largest container port in Canada. Every year, it handles over 1.6 million 20-foot equivalent units and 35 million tonnes of cargo, representing approximately $40 billion in goods. It is part of the critical economic infrastructure upon which Canadians and Canadian businesses rely.
What does all this mean for Canadians and Canadian businesses? I will explain. Even before the strike action began, there was a decrease in container volumes at the port worth $30 million per week for the month of March 2021, as compared to the prior year. The partial work stoppage reduced port capacity by approximately 30%, representing lost cargo volumes worth an estimated $90 million per week. The situation has deteriorated into a full work stoppage, which is now impeding the flow of approximately $270 million per week in cargo through the port.
In addition, there are significant risks that this work stoppage will deepen the reputational harm caused by the strikes in the summer of 2020 and create ongoing uncertainty. Even before this latest work stoppage began on April 13, we saw several companies diverting their cargo from the Port of Montreal. According to Sophie Roux, vice-president at the Montreal Port Authority, several Quebec and Ontario companies, such as Olymel, Resolute Forest Products, Société des Alcools du Québec and Dollarama, started using new routes to import or export their goods and containers back in February as the end of the truce neared. Temporary diversions could easily become permanent ones, which would result in long-lasting negative effects on the port and the integrated transportation system around it.
In March, the Shipping Federation of Canada voiced its concerns that once logistics chains are reorganized around other hubs, including those in the United States, it will be difficult to reestablish arrangements through the port. The federation believes that a port strike would have dire, long-lasting consequences.
In the wake of the parties each giving 72 hours notice for job action, the Canadian Manufacturers and Exporters expressed serious apprehension with the looming work stoppage. In its press release issued on April 12, the organization stated, “The uncertainty caused by this labour dispute has had financial impacts on Canadian manufacturers and exporters, and the partial strike risks hurting the sector even more.” It also noted that this work stoppage, “will further impact an already fragile manufacturing supply chain, particularly in Quebec and Ontario.” It continued that, “As governments are investing billions of dollars to restart the economy, it doesn't make any sense to allow a slowdown of operations at the Port of Montreal.”
As the stoppage continues, many sectors of the economy that depend on cargo transitioning through the port will find it difficult to function. I ask members to consider, for example, the Forest Products Association of Canada. Exporters face serious delays and increased costs to move products through other busy ports. They also indicate that it took that portion of the supply chain three months to recover from that strike.
It is reasonable to expect similar impacts this time. Prior to the beginning of this work stoppage, stakeholders in the forestry industry indicated that another work stoppage in the port would present the same significant challenges and costs for the forest industry.
In addition, several agrifood stakeholders have indicated that the work stoppage is damaging their ability to ship containerized agricultural products and is causing harm to Canada's reputation as a reliable exporter of agricultural products. Reputation is everything. Food producers also indicated that they had rerouted their exports to other Canadian and U.S. ports prior to the beginning of the work stoppage, something we do not want to see.
As members can see, the effects are wide ranging and the overall impact would be devastating were this work stoppage to continue, particularly as we continue to navigate the impacts of the ongoing pandemic and the associated lockdowns that have dealt such a blow to the economies around the world, including Canada's.
Back-to-work legislation is a last resort and not something this government takes lightly, but we also have a responsibility, again, to Canadians and Canadian businesses across the country. We must act in the best interests of Canadians and Canadian businesses. As the parties remain unable to come to a new collective agreement, we believe this is the best course of action. Members can rest assured we will continue to support the parties through every means possible.