U.S. port strike begins with major implications for Canada’s economy
Workers at 36 U.S. ports from Maine to Texas took to the picket lines early Tuesday in a strike over wages and automation.
Dockworkers across the eastern United States have joined their counterparts on strike at Montreal ports, adding to the growing wave of labor unrest affecting North American supply chains.
Workers at 36 U.S. ports, spanning from Maine to Texas, walked off the job early Tuesday, protesting over wages and automation. The contract between the ports and around 45,000 members of the International Longshoremen’s Association expired at midnight.
At the Port of Philadelphia, workers marched in a picket line, chanting “No work without a fair contract.” This is the first strike by the union since 1977, and they displayed messages like, “Automation Hurts Families: ILA Stands For Job Protection,” on a truck.
The U.S. Maritime Alliance, which represents the ports, announced on Monday evening that both sides had revised their wage offers, but no agreement was reached.
Meanwhile, dockworkers in Montreal began a 72-hour strike on Monday, shutting down two terminals that handle 40 percent of container traffic at Canada’s second-largest port. The local union, part of the Canadian Union of Public Employees, is pressing for regular scheduling and better wages.
The Maritime Employers Association (MEA) said on Sunday that they had exhausted all options to avoid a strike, including mediation and an emergency hearing before the Canada Industrial Relations Board.
In response to the U.S. strikes, President Joe Biden and Vice-President Kamala Harris issued a statement on Tuesday, saying they were "closely monitoring" the situation and urging both parties to reach an agreement. They also mentioned that they were "assessing ways to address potential impacts" on the U.S. supply chain.
The strikes come at a critical time, with the U.S. presidential election approaching and the North American economy facing pressures from rising interest rates. There are concerns that the strikes could reverse recent progress in controlling inflation, which had prompted central banks to consider interest rate cuts.
Moody’s provided a report to Global News warning that a prolonged U.S. ports strike "lasting more than a week or two would result in rising prices and noticeable shortages of manufacturing inputs and retail goods." The automotive industry, in particular, could suffer as imported components become scarce, and agricultural trade could also slow.
The Canadian Chamber of Commerce notes that $3.6 billion worth of goods and services cross the U.S.-Canada border daily, with many imports entering Canada through U.S. East Coast ports. A shutdown of these ports would endanger the supply of many goods, business groups have warned.
“There’s a lot of concern,” said Pascal Chan, senior director of transportation, infrastructure, and construction at the Canadian Chamber of Commerce. “Any significant disruption can really jeopardize the livelihoods of workers across multiple industries on both sides of the border.”
Further disruptions could also occur on the West Coast, where British Columbia dockworkers recently approved their own strike mandate. In July 2023, a 13-day strike by 7,400 B.C. dockworkers shut down Canada’s largest port, costing the economy billions.
Other notable strikes include the eight-day lock workers’ strike on the St. Lawrence Seaway in October 2023, which halted shipments of grain, iron ore, and gasoline, and previous strikes by Montreal longshore workers in 2021 and 2020, which left thousands of containers stranded.
