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July 24, 2023

Shipping Disruptions Continue As Canadian Dockworkers Reject Contract

Last week, West Coast Canadian dockworkers and their employers agreed to a tentative deal that takes a potential strike off the table for now. The workers had left their duties on Tuesday afternoon after a union caucus voted down a tentative deal agreed to by the union and port owners the week before. The Canadian Industrial Relations Board (CIRB) declared that move “illegal,” however, since the union did not provide the requisite 72-hour strike notice.

Though workers have returned to their jobs, continued disruption seems more likely as labor talks continue.

The deal brokered two weeks ago that was rejected by the union included pay and benefits increases above the nearly 10 percent increase workers had received over the past three years. A deal is important because Canadian port closures harm manufacturers and consumers all over the North American. Indeed, rail trade data from the Association of American Railroads on the second full week of the first strike showed a decline of 36.2 percent.

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