On Sunday, July 30th, the International Longshore and Warehouse Union of Canada (ILWU) and the British Columbia Maritime Employers Association (BCMEA) announced a tentative labor agreement through the assistance of the Canada Industrial Relations Board. The union’s membership and member employers are now recommended to ratify the agreement.

Despite this tentative agreement, there are still uncertainties not yet resolved. The initial labor agreement was rejected by the union body last week. The previously disclosed offer from the BCMEA included a package containing a 19.2% compounded wage increase over four years, with a signing bonus of $1.48 per hour for each employee. This equates to roughly $3,000 per full-time employee. The deal also included an 18.5% increase in the retirement payout. The BCMEA has stated “Over the past 13 years, longshore wages have risen by 40%, outpacing inflation at 30%.”

This ongoing dispute has significantly impacted Canadian ports and inbound U.S. trade, resulting in more than 16 canceled sailings to Canadian ports during the 14-day strike, as reported by maritime intelligence company, eeSea.

A.N. Deringer , Inc. will continue to monitor the situation…