Month in Review – November 2024
Maritime
November 2: BCMEA’s Industry Final Offer to ILWU Local 514 – BCMEA update
In an effort to bring nearly two years of negotiations to a close, the BCMEA presented a final offer letter to ILWU Local 514 President Frank Morena.
November 2: MEA Suspends Salary Guarantee for Longshore Workers Not Working – MEA update
The Maritime Employers Association (MEA) is suspending the salary guarantee as of November 5 at 7:00 am for all longshore workers not working, with the exception of bulk sector and essential services. This is a mitigation measure to reduce the cumulative financial impact of repeated strikes and lower volumes at the Port of Montreal.
November 4: ILWU Local 514 Strike Activity Commences – BCMEA update
At 8:00 am on November 4, ILWU Local 514 industry-wide strike activity commenced at BCMEA member terminals.
November 4: Partial Strike by Port of Montreal Dockworkers: Court Rejects MEA Request – Radio-Canada (translated from French)
The Federal Labour Court has once again rejected the request of the Maritime Employers Association (MEA) to have the partial strike by dockworkers at the Port of Montreal affecting the Termont company declared illegal.
The Canadian Industrial Relations Board (CIRB) ruled on the principle of res judicata, since it had already ruled on the previous partial strike affecting the same two Termont terminals.
The Council ruled on a virtually identical request after hearing the parties on September 29, said the court. The only difference is that this time the partial strike is unlimited, whereas it was limited to three days in September.
The union is therefore entitled to exercise the right to strike, even partially, without breaching its obligation to negotiate in good faith, it ruled.
November 6: Trump Presidency Will Reignite U.S.-China Trade War and Threaten a Spike in Ocean Container Rates: Xeneta – American Journal of Transportation
Donald Trump’s victory in the U.S. presidential election is ‘a step in the wrong direction’ for international trade, as importers fear another spike in ocean container shipping freight rates.
Data from Xeneta – the ocean and air freight intelligence platform – shows the last time Trump ramped up tariffs on Chinese imports during the trade war in 2018, ocean container shipping freight rates spiked more than 70%.
Peter Sand, Xeneta Chief Analyst, said: “Shipping is a global industry feeding on international trade, so another Trump presidency is a step in the wrong direction.
“The knee-jerk reaction from U.S. shippers will be to frontload imports before Trump is able to impose his new tariffs. Back in 2018, the tariff on Chinese imports was 25%, now it is increasing up to 100% so the incentive to frontload is even greater.”
November 10: Lockout Triggered at Port of Montreal – Le Journal de Montréal (translated from French)
In the absence of an agreement with the CUPE dockers, the Maritime Employers Association (MEA) called a lockout at the Port of Montreal on November 10.
When submitting its final offer on November 7, the MEA warned the longshoremen’s union “that in the absence of an agreement on the offer … only essential services and activities not related to longshore will continue at the Port of Montreal as of Sunday, November 10 at 9 pm.”
Members of the union rejected the MEA’s offer by 99.7% during a secret vote held at a general meeting in the morning of November 10.
The MEA said in a press release that it “reiterates its request to the Minister of Labour, Steven MacKinnon, to intervene to resolve the impasse as quickly as possible.”
November 12: Minister of Labour Orders End to Labour Disruption at Ports, Imposes Binding Arbitration – BCMEA update
On November 12, Labour Minister Steven MacKinnon announced he will use his powers under Section 107 of the Canada Labour Code and direct the Canada Industrial Relations Board (CIRB) to order parties at the Port of Montreal and across Canada’s West Coast to resume operations and duties, and to impose binding arbitration on the parties in order to reach a settlement.
November 13: Resumption of Operations – BCMEA update
On November 13, the Canada Industrial Relations Board (CIRB) issued an order directing the BCMEA and all its members to resume operations on November 14, and to continue operations and duties until the Board makes a final determination.
With the resumption of work, coupled with an anticipated high volume of vessels and cargo, there will be extensive, province-wide labour requirements across all port areas.
The CIRB has scheduled a hearing on November 18 to hear the parties on certain questions raised with respect to the ministerial direction under Section 107 of the Canada Labour Code.
November 13: Canadian Unions Plan Court Challenges to Arbitration Ending Port Strikes – The Maritime Executive
The unions representing the foremen for ports in British Columbia and the dockworkers in Montreal both responded angrily to the announcement that the federal government was mandating final and binding arbitration in their contract disputes.
On the West Coast, where the International Longshore and Warehouse Union Ship & Dock Foremen Local 514 has been locked out since November 4, the union leadership called the government’s decision “an insult” and said it was denying workers’ bargaining rights.
“We will fight the arbitrated forced contract in the courts,” said Frank Morena, president of the local, in a press release. “Labour Minister Steven MacKinnon has unfairly given the BC Maritime Employers Association (BCMEA) the one-sided federal intervention it wanted from locking out workers and closing BC ports.”
At the same time, the Quebec branch of the Canadian Union of Public Employees (CUPE), which represents the Port of Montreal’s nearly 1,200 dockworkers, called it a “dark day for workers’ rights.” In a press release, the union asserted, “The right to collective bargaining is a constitutional right.”
November 13: ILA Breaks Off East Coast Port Contract Talks – American Shipper
The International Longshoremen’s Association has broken off contract negotiations with East and Gulf Coast port employers, accusing them of pushing automation technology into a new coastwise labour pact that would eliminate union jobs.
The ILA and employers represented by the United States Maritime Alliance this week resumed bargaining on a new six-year master contract covering 45,000 union workers involved in container handling at dozens of East and Gulf Coast ports.
In a statement posted to social media and then taken down, the ILA said that in meetings in New Jersey, “USMX introduced language in their proposal for semi-automated equipment to be used at ILA ports, which this union outright rejected. The ILA recognized this as a renewed attempt by USMX to eliminate ILA jobs with automation and broke off talks.”
November 16: Port of Montreal Operations Resumed – City News Montreal
Operations were set to resume at the Port of Montreal on November 16 following the lockout of longshore workers.
Management at the Port of Montreal says it will take several weeks to fully establish the import and export supply chain flow following the lockout that started on November 10. That’s when the Maritime Employers Association locked out close to 1,200 longshore workers after its latest contract offer was rejected.
The Canada Industrial Relations Board ordered the restart of operations at the port, as well as for negotiations to be moved to binding arbitration.
November 25: Mediation for Montreal Port Labour Talks – American Shipper
Port of Montreal employers and union dockworkers have mutually agreed to mediation in their contract negotiations.
“Following the decision of the Canada Industrial Relations Board (CIRB) on Nov. 14, the union of Longshoremen of the Port of Montreal (CUPE 375) and the Association of Maritime Employers (MEA) have agreed, by consensus, to undertake a mediation process for a period of 90 days,” the sides said in a joint release.
The parties have agreed to retain the services of Gilles Charland, a dispute resolution specialist. Both sides also agreed not to make any public statements during the mediation process.
November 27: Australian Wharfies to Expand Job Action at Bulker/General Cargo Terminals – The Maritime Executive
Australian port terminal operator Qube becomes the latest in a long list of port operations to be facing potential strikes by dockworkers. The National Maritime Union (NMU) of Australia anticipates that 10 Australian ports will be involved by late December as it seeks to expand its industrial action against the company.
The NMU asserts that the real value of wages paid to its members by Qube has declined 14 percent due to inflation since the pandemic. The union’s demands include pay increases that catch up with inflation and protect dockworkers’ purchasing power. They cite the principle of “same job same pay,” demanding increases for all workers.
Air
November 9: Revision of Liability Limits Under the Montreal Convention 1999 – FIATA
Effective December 28, the liability limits for passenger and cargo claims under the Montreal Convention of 1999 will increase, as announced by the International Civil Aviation Organization (ICAO).
According to the changes, the limit for destruction, loss, damage or delay of cargo will rise from 22 SDRs to 26 SDRs per kilogram.
The liability limits are indicated in Special Drawing Rights (SDRs), a unit of account defined by the International Monetary Fund. For indicative purposes, 1 SDR was valued at US$1.33038 on October 25 this year.
The limits are set to increase in line with the Convention’s built-in review mechanism, to adjust for inflation every five years so as to ensure that passenger and cargo compensation remains appropriate over time.
These updates will affect freight forwarders, as they will need to align their documentation and risk management processes when handling air shipments to ensure seamless compliance and account for the increased liability limits.
November 19: Changes to U.S. Air Cargo Advance Screening Requirements and Guidance – FIATA
New TSA emergency air cargo security measures and updates to the ACAS program are aimed at strengthening the security of cargo entering or transiting through the United States. Supply chain players, including freight forwarders, must comply with these more-stringent pre-loading advance cargo information (PLACI) requirements.
Changes have been made to requirements related to data elements, the “established business relationship” and more.
Rail
November 19: Canadian Railways Seek Solutions to Frequent Labour Disruptions – Trains
If there’s a silver lining to the spate of labour disruptions that have affected Canadian railways and ports over the past 15 months, it’s that Ottawa now recognizes there’s a problem.
“That’s the first step in fixing it,” Canadian National CEO Tracy Robinson said at the recent RailTrends conference. CN executives were scheduled to meet with federal officials about labour matters in the week of November 18, she said.
Canadian ports and railways are losing traffic to their U.S. rivals due to recent work stoppages. CN and CPKC have seen significant growth in their international intermodal traffic for more than a decade as Canadian ports have become gateways to the U.S. Midwest. Frequent labour disruptions put that traffic at risk, the railways have said.
The railways are advocating for changes in Canadian labour law that would make it mirror the U.S. Railway Labor Act, which seeks to avoid strikes by sending unions and railroads to binding arbitration or mediation when contract talks are deadlocked.
The Teamsters Rail Canada Conference, which represents train crews on CN and CPKC, is bitterly opposed to any changes to existing labour regulations.
Marc Brazeau, CEO of the Railway Association of Canada, says the railways respect workers’ right to strike, but notes that a relatively small number of unionized workers should not be able to shut down the country’s economy.
November 25: CN Rail Mechanics, Clerks Vote Overwhelmingly to Approve Strike Mandate – CBC News
Mechanics and clerks at Canadian National Railway Co. have voted overwhelmingly in favour of a strike mandate that could see workers walk off the job as early as New Year’s Day.
Unifor says 97 percent and 96 percent of the two groups, respectively, cast their ballots in favour, paving the way for potential job action on January 1.
One group comprises 2,100 mechanics, technicians, crane operators, machinists and electricians, and the other includes 1,500 administrators and customer support staff. They are calling for improved job security, compensation and working conditions at CN.
Unifor says negotiations are resuming in Montreal and will continue through December 8.
Trucking
November 6: Stakeholders Concerned Over Deteriorating Safety, Compliance Standards in Ontario Trucking Industry – Today’s Trucking
Trucking industry stakeholders have raised the alarm about an increasing number of companies, schools and drivers in Ontario who do not rise to the minimum professional requirements, and in many cases disregard complying with laws and standards.
A release signed by the Ontario Safety League, Ontario Trucking Association, Truck Training Schools Association of Ontario, Private Motor Truck Council of Canada, Professional Truck Training Alliance of Canada, Teamsters Canada and Women’s Trucking Federation of Canada says, “It is distressing to admit the standards of safety and compliance are eroding rapidly in our industry.”
The stakeholders believe the Ontario trucking industry is being dominated by carriers whose operating model is built on widespread non-compliance and who have little to no commitment to vehicle and driver safety and the environment.
They have no respect for labour standards and mandates, contempt for employee and contractor classifications, and willfully neglect their obligation as corporate citizens to contribute to Canada’s social systems, the release adds.
November 19: FMCSA Proposes New Rules on Broker Transparency – FreightWaves
Federal regulators have issued a long-awaited proposed rule in response to allegations of fraud in the rate-making process raised by owner-operators against truck brokers.
In May 2020, the Owner-Operator Independent Drivers Association and the Small Business in Transportation Coalition petitioned the Federal Motor Carrier Safety Administration to improve broker transparency.
OOIDA’s petition requested that brokers automatically provide transaction information within 48 hours of the completion of contractual services and that brokers be prohibited from including any contract provision that requires a carrier to waive its rights to access the transaction records.
SBTC also wants brokers to be prohibited from requiring carriers to waive their rights to review transaction records, and wants FMCSA to adopt new regulatory language stating that broker contracts cannot exempt brokers from having to comply with transparency requirements.
FMCSA’s proposal stops short of outright prohibitions as requested, however.
“Though the proposed rule is responsive to the petitions in reinforcing the broker transparency requirement, the proposed provisions differ from those requested by OOIDA and SBTC,” the agency stated in a notice.
November 29: Trucking Companies Hit with $165 Million in Nuclear Verdicts in the U.S. in 2023 – Today’s Trucking
Trucking companies across the U.S. faced US$165 million in nuclear verdicts – jury awards exceeding $10 million – in 2023, according to the latest Marathon Strategies report.
To address such challenges, Iowa became the first state in the U.S. to cap liability damages against trucking companies, helping companies affected by nuclear verdicts. The legislation limits such damages to $5 million. It does not include cases where a trucking company acted negligently, such as through hiring, training, supervising, or trusting an employee driver involved in a crash, according to the report.
Louisiana continues to be one of the hardest-hit states for trucking-related verdicts. Last year, the state accounted for 15 nuclear verdicts for the trucking, oil and gas, and pharmaceutical industries, ordering nearly $10 billion in payoffs. Meanwhile, Florida ordered companies in trucking, automobile, real estate and tobacco industries to pay more than $33.2 billion in 175 verdicts since between 2009 and 2023.
CIFFA Advocacy, Communications, Activities
November 11: CIFFA Letter to Labour Minister Regarding Port Work Stoppages
CIFFA wrote to federal Labour Minister Steven MacKinnon, urging him and the federal government to consider classifying the key port work forces as “essential,” thereby ensuring that a different and more reliable mechanism can be employed to resolve labour/management negotiations.
November 27: CIFFA Announces Winners of the 2024 Scholarship Program
CIFFA is pleased to announce two winners of the 2024 CIFFA Scholarship Program: Ava Hihn and Hannah Murphy.
The scholarship was created to raise awareness of global logistics as a career path and to encourage advanced education in international trade, logistics and commerce.
CIFFA awarded a cheque for $4,000 to each of the scholarship recipients.
