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BCMEA and ILWU announce another collective agreement two days after failed vote

The ILWU membership rejected a deal on Friday, prompting labour minister Seamus O’Regan Jr to revert the issue to the Canada Industrial Relations Board

The ILWU leadership and the BCMEA have ‘concluded a negotiated collective agreement’ two days after the union’s rank and file rejected a deal recommended by the leadership. The rejection of two deals so far suggests that third time might not necessarily be the charm

THE International Longshore and Warehouse Union Canada and the British Columbia Maritime Employers’ Association announced another agreement on Sunday, two days after the union’s rank and file voted down a deal recommended by the ILWU’s leadership.

“The International Longshore and Warehouse Canada and the British Columbia Maritime Employers’ Association have concluded a negotiated collective agreement today with the assistance of the Canada Industrial Relations Board,” the BCMEA and ILWU said in a joint statement, their first since negotiations began.

“The parties are recommending ratification of the collective agreement to the union’s membership and member employers respectively.”

Following the union voting down the deal on Friday, Canada’s labour secretary Seamus O’Regan Jr referred the issue to Canada’s labour tribunal for further action.

“I have directed the Canada Industrial Relations Board to determine whether the union’s rejection of the tentative agreement has eliminated the possibility of a negotiated resolution,” O’Regan said in a statement on Saturday. 

“If the board determines that to be the case, I have directed then to either impose a new collective agreement on the parties or impose final binding arbitration to resolve outstanding terms of the collective agreement.”

British Columbia’s ports were facing more uncertainty following Friday’s vote, having undergone weeks of on-and-off strikes and now two rejections of tentative agreements.

While there have been no suggestions about further strike actions since Friday, the chaotic events of the past month loom over the latest announcement, and it remains to be seen whether the membership will ratify the new deal its leadership have signed off on.

In a statement on Sunday before the latest deal was announced, ILWU president Rob Ashton struck a conciliatory tone, saying the union is “renewing its commitment” to the direct employers — ocean carriers and terminal operators — who, the letter suggests, have communicated their concern over the union’s rejection of the deal.

Ashton positively noted the negotiated wage increases and bonuses. He acknowledged the progress that has been made regarding certain “workforce-related matters”, but cited membership concerns about contracting out, a thorny issue that has bedevilled the talks and that led to their derailment early in July.

“The rejection of the tentative agreement by ILWU Canada’s voting membership reflects their collective need to limit contracting out maintenance work, coupled with training and updating skills,” Ashton said.

Dockworkers were on strike for nearly two weeks starting on July 1, and for several hours on July 18, shutting down box operations in key ports such as Vancouver and Prince Rupert, which are Canada’s largest and third-largest ports, and also important gateways for US freight shipped via rail. 

The strike is estimated to have disrupted the flow of billions of dollars’ worth of cargo, and the ensuing congestion and delays in anchorages, terminals, and rail ramps is expected to take weeks to resolve.

“Enough is enough. We cannot continue to play this reckless game,” Canadian Chamber of Commerce president and chief executive Perrin Beatty argued in a statement.

“The federal government cannot just close its eyes and hope for the best any longer. The damage will continue unless it acts. The ports’ shutdown has cost our economy billions and has tarnished our reputation as a trading nation. As the prime minister stated, ‘Canada cannot face further disruption.’ To get our ports working again, we need to get parliament back to work.”

The first leg of the strike ended when both the ILWU’s bargaining committee and BCMEA agreed to the terms of settlement recommended by a federal mediator. 

However, the union’s longshore caucus rejected the deal on July 18. Dockworkers then resumed strike action that day, only to be ordered back to work the following morning after the CIRB ruled the strike illegal because a mandatory 72-hour notice was not provided.

The union then reissued the notice — only to remove it a few hours later.

A notice posted on one of the ILWU local chapters said a tentative deal was reached that evening, and two days later, the BCMEA said the union’s longshore caucus agreed to recommend its membership the very same deal it had just rejected a few days prior. 

The ILWU membership’s rejection of the deal on Friday placed further uncertainty on to Canada’s west coast ports and North American supply chains as volumes pick up for peak season.

ILWU Canada president Rob Ashton announced the outcome and called on the employers to negotiate directly with the union. However, he did not signal any intent to resume strike action.

The British Columbia Maritime Employers’ Association slammed the decision and said it was awaiting “further direction” from the federal government. 

“The proposed four-year agreement was a good deal that recognised the skills and efforts of British Columbia’s waterfront workforce while providing certainty and stability for the future of Canada’s west coast ports,” the association said in a statement Friday.

“ILWU Canada’s inability to ratify a fair and balanced recommended tentative agreement has left Canadians, businesses and the entire supply chain in a perilous state that has cost billions and will further hurt affordability and increase costs for Canadians.”

Vote tallies were not made available. The ILWU has been approached for comment.

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