Workers at six grain terminals in Vancouver on strike

News

About 650 members of the GWU Local 333 began a strike, disrupting the trade of key commodities, while Reuters reported negotiations resumed.

Workers at six grain terminals in Vancouver on strike
© GWU LOCAL 333 ILWU / Facebook

Workers at the six major grain terminals in the Canadian port of Vancouver began their strike on Tuesday morning.

As reported by The Globe and Mail, approximately 650 members of the Grain Workers Union (GWU) Local 333 ceased work, disrupting the trade of various commodities, including canola, wheat, barley, and oats.

The Vancouver Terminal Elevators Association (VETA) indicated that the operations affected include Viterra’s Cascadia and Pacific Terminals, Richardson International Terminal, Cargill Limited Terminal, G3 Terminal Vancouver, and Alliance Grain Terminal, all located in Vancouver and North Vancouver.

Negotiations between the GWU and VETA collapsed last week, resulting in a deadlock over benefits, which could impact exports from Canada, the world’s leading exporter of canola and the third-largest exporter of wheat, during the harvesting season.

As previously noted by BulkMaterials International, on 21 September, the GWU bargaining committee notified VETA and the Federal Minister of Labour of a 72-hour strike notice, which permitted the strike to begin at 7 a.m. on 24 September 2024. Union members had previously voted unanimously in support of the strike action.

Reuters reported that negotiations resumed on Tuesday with the involvement of federal mediators, a development that, according to a trader, led to a rise in Intercontinental Exchange canola futures.

Labour Minister Steven MacKinnon stated on social media that, at his request, both parties had agreed to continue negotiations with the help of federal mediators. He emphasised that, following a bountiful harvest summer, it was crucial for Canadian farmers and businesses to bring their products to market and urged the parties to strive for an agreement. MacKinnon also mentioned that the best resolution to labour disputes was through negotiation.

On Wednesday, Douglas Lea-Smith, president of Grain Workers Union Local 333, informed CBC News that VETA was delaying negotiations and unwilling to engage.

The GWU Local 333 had presented VETA with a “comprehensive package” on 19 September; however, the union claimed that VETA had not offered a counter-proposal.

The Canola Council of Canada released a statement indicating that the strike would lead to considerable financial damage and urged the government to act swiftly to resolve the conflict.

Grain farmers expressed that the strike could “halt nearly 100,000 metric tonnes” of commodities from arriving each day, potentially resulting in losses of C$ 35m daily in export revenues.

Jerry Gidel, an analyst at Midland Research, suggested that although a significant portion of Canada’s agricultural exports pass through Vancouver to Asia, the strike would likely have a limited market impact unless it persisted for three to four weeks.

Jack Scoville, an analyst with the Price Futures Group in Chicago, noted that the strike might lead to increased shipments of canola and wheat through US ports.

By taking this action, workers disrupted agricultural exports to Asia during the critical harvest season, particularly affecting canola shipments ahead of China’s potential sanctions against this essential commodity.

Last month, the federal government announced a 100% surtax on imports of Chinese electric vehicles into Canada, effective from 1 October. In response, China initiated an anti-dumping investigation this month regarding canola exported from Canada.