B.C. port strike sees union, employers clash over $81250 retirement payment - The Globe and Mail

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Striking International Longshore and Warehouse Union Canada workers march to a rally as gantry cranes used to load and unload cargo containers from ships sit idle at port, in Vancouver, on July 6.DARRYL DYCK/The Canadian Press

The threat of automation looms over B.C. port workers on strike as the union and employers clash over how much money to set aside in a retirement fund designed to compensate employees for modernization and mechanization.

Known as M&M payments, the fund earmarked for union members has grown over the years to the current lump-sum payout of $81,250, allowing a worker with at least 25 years of service to receive the payment within 30 days of retirement, according to two sources familiar with the situation.

What the union calls a “retiring allowance” is over and above benefits and pension. In the past, the payment has been a crucial part of keeping labour peace on the waterfront, with employers seeking to address concerns about job security amid waves of technological change over the decades.

The Globe and Mail is not identifying the sources because they were not authorized to speak publicly on the matter.

About 7,400 members of the International Longshore & Warehouse Union Canada (ILWU) went on strike on Canada Day at the Port of Vancouver and smaller regions, affecting at least 30 terminals across British Columbia. Contract talks stalled on Tuesday.

B.C. port workers’ strike sparks concern over supply chain, inflation

The ILWU is seeking to increase the retirement payout to $91,250 in its two-year proposal, with $5,000 extra in the first year and another $5,000 in the second year.

The B.C. Maritime Employers Association agrees with $5,000 extra in the first year, but is proposing an increase of $2,500 in each of the following three years to raise the total to $93,750 at the end of its four-year proposal.

In April, the federal government approved the Vancouver Fraser Port Authority’s proposed $3.5-billion Roberts Bank Terminal 2 project, or RBT2, to be located near the Vancouver suburb of Delta.

The ILWU and environmental groups oppose the plans to build the terminal, which would be semi-automated. The union has warned that RBT2 could produce a ripple effect at existing operations, with semi-automated sites operating with 50 per cent fewer employees.

A wide range of terminals at the Port of Vancouver alone handled an average of $835-million a day of cargo last year.

To be eligible for the retirement payment, ILWU members need at least 15 years of service, including five consecutive years prior to applying for retirement. Payments vary, depending on credited service. For example, a worker with 24 years of service would have been eligible to receive $73,864 under the previous contract that expired on March 31.

In the 1960s, forklifts were the norm, but even back then, workers and employers recognized the potential adverse effects of modernization and mechanization on how many unionized members would be needed to load and unload cargo.

Today, after reusable steel containers steadily gained popularity over the decades, it’s standard practice for ship-to-shore cranes to place one container after another onto a steady stream of rugged trucks with trailers, as drivers shuttle the steel boxes within sprawling terminals.

ILWU president Rob Ashton accused employers of engaging in a “smear campaign” with “dirty tricks” designed to discredit port workers.

“The reality is, our people do hard work under difficult, often dangerous conditions, and they kept Canada’s economy moving through the worst of the pandemic,” Mr. Ashton said in a statement. “That’s a long ways from the picture the employer wants to paint. It can be a good living, but it takes years of sacrifice to get there, and it’s still hard work.”

Union seeks $8,000 ‘inflation adjustment’ for B.C. port workers on strike

A coalition of business groups including the Canadian Chamber of Commerce, Greater Vancouver Board of Trade, B.C. Council of Forest Industries and Canadian Manufacturers & Exporters has been urging the federal Liberal government to recall Parliament to introduce back-to-work legislation. But Labour Minister Seamus O’Regan has consistently said the focus must be on finding a resolution at the bargaining table.

About 6,000 of the ILWU’s members are in the Vancouver region, 1,000 in the Prince Rupert area in northern B.C. and the rest on Vancouver Island. The union has listed three main concerns at the bargaining table: automation, contracting out and cost-of-living wage increases.

The ILWU has sought a wage raise of 11 per cent in the first year and 6 per cent in the second year, as well as an $8,000 signing bonus as an “inflation adjustment allowance,” according to the two sources familiar with the situation. The union’s proposed two-year deal would result in a hike to the general base rate, which is $48.23 an hour for the day shift.

The BCMEA is proposing a four-year pact, including wage increases of 5 per cent in the first year, 3.5 per cent in the second year, 3 per cent in the third year and 2.5 per cent in the fourth year.

In a statement, the ILWU said it’s time for employers to share some of their wealth. “A waterfront worker spends many years waiting on call to get one-off shifts at very short notice,” the ILWU said. “Their income is sporadic, and the unpredictability of shifts makes it hard to supplement it with other jobs. Turnover is high in this period, as many workers can’t stick it out.”

The BCMEA has cited a median annual income of $136,000, plus benefits and pension, for longshore workers last year.

Union officials have pointed out that port, terminal and shipping executives earn much more money than the rank and file.

Soren Skou, who headed international shipper Maersk until the end of last year, had compensation equivalent to $8.5-million in 2022.

Robin Silvester stepped down on June 30 as president and chief executive officer of the Vancouver Fraser Port Authority after more than 14 years at the helm. Mr. Silvester had $1.68-million in compensation last year.

Victor Pang, the port authority’s chief financial officer, took on the role of interim president and CEO on June 30. Mr. Pang collected $851,000 in his pay packet last year.

Judy Rogers stepped down as the port authority’s chair on July 1 after five years. Catherine McLay has replaced Ms. Rogers, who received $180,000 in pay last year.

The port authority reports to federal Transport Minister Omar Alghabra.

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2023-07-07 22:33:38Z
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