Port of Montreal Lockout: MEA Imposes Lockout After Union Rejects Final Offer

11 Nov Port of Montreal Lockout: MEA Imposes Lockout After Union Rejects Final Offer

Canada’s Maritime Employers Association (MEA) has imposed a lockout on striking employees at the Port of Montreal following the rejection of its “final” offer by the Longshoremen’s Union CUPE Local 375. Dockworkers at the Termont terminals, responsible for handling 40% of the port’s volume, continue to strike, seeking higher wages, while some workers at other facilities are refusing overtime, further delaying cargo movement.

The MEA expressed disappointment with the union’s decision, stating it had “no choice but to declare a lockout” and has called for government intervention to expedite a resolution. The MEA’s final offer included a cumulative salary increase of over 20% over six years, retroactive to early 2024, which would bring the average annual compensation for dockworkers to over C$200,000, including pension and benefits.

Shipping lines are adjusting their schedules in response to the disruption. Maersk announced that its Barcelona Express service will skip Montreal and instead discharge imports at St John. CMA CGM is considering a similar move to discharge at Halifax. Rail operators CPKC and Canadian National have also suspended transport to Montreal’s inland terminals, ceasing acceptance of containers destined for the port until further notice.

Port activity has been minimal since the dispute began on October 31, with only five vessels at anchorage or berth, requiring a reduced longshore workforce to manage the decreased volume. The port authority emphasized that the strikes are affecting not only operations but also public safety and the broader economy, disrupting the supply of essential goods across Quebec and Canada.

Overall, this will increase the congestion in the Port of Halifax by an estimated dwell time 5 days, in addition to the current dwell time.