Above photo: Longshoremen at the Port of Montreal have launched a 72-strike targeting Termont. Graham Hughes/AFP/Getty Images.
As the U.S. economy prepares for a potentially devastating strike across its East Coast ports, Canada is already dealing with its own.
About 320 longshoreman represented by a local affiliated with the Canadian Union of Public Employees, began a 72-hour strike on Monday morning, freezing work at two terminals at the Port of Montreal. Those terminals, which are operated by Termont, represent about 40% of the containers that move through the port.
The Port of Montreal impacts 37,774 jobs and contributes $2.7 billion to Canada’s economy every year, according to a 2023 study. It also provides more than 2,000 jobs to the U.S. and $145 million in economic benefits.
“The Montreal Port Authority (MPA) expresses its disappointment that no agreement has been reached between the MEA and the Longshoremen’s Union to avoid a work stoppage,” the authority said in a statement, adding that the interruption will cost $90.7 million each day of the stoppage.
The union, which counts 1,150 longshoremen as members, last week rejected the latest offer from the Maritime Employers Association (AEM) by margins of over 99% and filed a strike notice. The union said it would not go on strike if conditions regarding foreman operations and scheduling were met, according to the Montreal Gazette.
“AEM tried by all available means to avoid the strike planned for tomorrow at the Viau and Maisonneuve terminals of the Termont company at the Port of Montreal, but in vain,” the group said in a statement.
The strike mirrors a similar — but much more devastating — situation developing in the U.S., where thousands of longshoremen are poised to walk off the job Tuesday. Workers across the East Coast and Gulf Coast are set to strike, as negotiations between the International Longshoremen’s Association and the association representing port authorities and companies remain divided.
Practically all industries would be impacted by a strike. Shipments of foreign fruit including pineapples, bananas, citrus, and grapes, which normally enter the U.S. through its eastern and Gulf coasts, could end up caught in the crosshairs. Auto and pharmaceutical companies would also face severe disruptions in getting goods to stores, which could lead to prices spiking across the country.
The potential damage of such a strike is expected to cost somewhere between $1 billion and $5 billion per day, according to analysis from shipping container marketplace Container xChange and J.P. Morgan (JPM). Oxford Economics has said a prolonged strike could impact up to 100,000 jobs and reduce U.S. economic activity by between $4.5 billion and $7.5 billion for every week it persists.
On Thursday, the United States Maritime Alliance filed an unfair labor practice charge and requested the National Labor Relations Board require the union to resume bargaining. In response, the ILA slammed the charge as “another publicity stunt.”
The union is expected to provide an update on negotiations later Monday morning in its first public statement since last week.