The union representing more than 700 foremen in British Columbia is accusing the workers’ employers of “acting recklessly” by threatening an industry-wide lockout to shut down all provincial ports by 8 a.m. PT Monday.

Frank Morena, president of the International Longshore and Warehouse Union Local 514, told the BC Maritime Employers Association (BCMEA) publicly launched a final offering on Saturday, aspects that the BCMEA said “could change if negotiations drag on and the economic or inflationary landscape continues to change.”

Specifically, the employer listed four items at risk.

These include retroactivity on wages, improvements in welfare and other benefits, a signing bonus and maintaining the “4/3 pay ratio between foremen and longshoremen”.

The offer itself proposes a 19.2% pay rise over the four-year deal, from April 2023 to March 31, 2027.

It also includes a 16 percent increase in the retirement benefit, a 10 percent increase in employer contributions to the social assistance plan and a payment of about $21,000 to eligible employees, including back pay from the end of the contract.

Morena said the union will not sign a contract that risks removing existing parts of the collective bargaining agreement.

“The BCMEA is demanding wild concessions, skipped the last mediation session, is unwilling to return to the bargaining table, and plans to shut down the entire wharf because of a union overtime ban — this makes no sense — unless which BCMEA. wants to create an unnecessary crisis to pressure the federal government to step in,” he said on Sunday.

Federal mediators on site for negotiations

Steven MacKinnon, Canada’s labor minister, said in a social media post Saturday that federal mediators are ready to help broker a deal to avoid a work stoppage at B.C.’s ports.

MacKinnon said he has spoken with the Maritime Employers Association of BC and the union about negotiations for their new collective agreement. He said both sides had a responsibility to reach an agreement, adding that “businesses, workers and farmers are counting on them” to reach an agreement.

Management and the union have been negotiating for more than a year and a half to renew their collective agreement, which expired in March 2023.

On Thursday, the union issued a 72-hour notice for the job action that will begin Monday at 8 a.m. PT.

The move prompted the union to issue a formal notice that it would “defensively” lock out union members beginning at the same time.

Earlier on Sunday, the employers’ association said it had “no further developments to report”.

“BCMEA’s final offer remains open and, if accepted by the union, would avoid an unnecessary strike,” it said in an email.

The Port of Vancouver – Canada’s largest – has suffered a series of recent disruptions due to labor unrest, including several days of picketing at several grain terminals in September and a work stoppage involving both major Canadian railways in August.

Hundreds of millions on the line

Industry experts say the job action could shut down the entire West Coast port system and risk hundreds of millions of dollars in trade a day.

A 13-day strike by dock workers last year halted billions of dollars in trade, impacting docks across the country.

Jasmin Guenette, vice-president of national affairs at the Canadian Federation of Independent Business, said small businesses have been caught in the crossfire.

“Many small businesses, unfortunately, suffer financial losses, they may lose sales, some businesses may lose inventory.”

Guenette said the federation is asking the federal government to make the ports an essential service so “they remain fully operational at all times.”

Trevor Heaver, professor emeritus at the University of British Columbia’s Sauder School of Business, said the blackout, if extended, will cause the industry to catch up once the two sides reach an agreement.

“Neither producers nor consumers going to the store will see the effects immediately, but if it continues, then stocks will be reduced and producers and consumers would feel the effect,” he said.