For the second time in less than three months, Ottawa is stepping in to stop a pair of potentially catastrophic strikes.
What happened: Canada’s labour minister has ordered an end to work stoppages at the ports of Montréal and Vancouver — the country’s two largest ports. It was estimated that the combined strikes were affecting over $1.3 billion worth of trade daily.
- Back in August, the feds also stepped in to stop a national rail strike that threatened to disrupt $1 billion of cargo per day.
Why it matters: Canada has seen 62 work stoppages in the transportation sector alone over the past two years. That less-than-stellar track record of disruptions hasn’t just hurt supply chains — experts say it’s damaging Canada’s reputation as a reliable trade partner.
- The CEO of railway company Canadian Pacific Kansas City says shippers are opting for less efficient, more expensive routes because Canada has become less reliable.
Bottom line: While intervention can help alleviate the economic toll of strikes in the short term, federal mediators have long warned that it disincentivizes workers and employers to compromise in their negotiations until the feds inevitably step in.—LA