Striking port workers from the International Longshore and Warehouse Union Canada cheer as speakers encourage the crowd while attending a rally in Vancouver, on July 9.ETHAN CAIRNS/The Canadian Press
James White is president and chief executive of Wellmaster and chair of the Ontario advisory board of the Canadian Manufacturers & Exporters group.
For more than 35 years, my family has owned a small manufacturing business that makes steel products for groundwater, energy and greenhouse projects. We employ nearly 50 people, several second-generation employees and are located in Tillsonburg, a small town in southwestern Ontario, Canada’s manufacturing heartland.
Geographically, we are thousands of kilometres away from the ports of British Columbia. Economically, we are tied at the hip.
Thankfully, and finally, the months long on-and-off strike at these ports is over. Good news for many. However, our work is just beginning. We’ll be feeling the repercussions from the slowdowns and backlogs well into the fall.
We need a legislative framework that says such critical trade infrastructure is off limits to strikes. We need to do this to maintain Canada’s strong reputation abroad. We need to do this for Canadian families, like mine, and yours.
The labour disruption at the B.C. ports is the most recent in a series of slowdowns, blockades and stoppages affecting our industry – and it’s becoming unsustainable. Not only are our businesses profoundly impacted, but so is Canada’s reputation as a trading nation and a reliable, stable place to invest and do business.
Minister launches review of B.C. port strike case to uncover ‘structural issues’
Our story is not unique. We are one of many small and medium-sized manufacturers in this country that, we believe, play a crucial role in supporting Canadian families and fuelling our economy. In 2021, according to Statistics Canada, small businesses made up 98.1 per cent of all employer businesses in Canada and employed nearly 10 million people.
Right now, more than 200 tonnes of specialized steel, which my company has already paid for and is needed to manufacture our products, is stuck somewhere out West or on a dock, waiting to be loaded. Because we are a small manufacturer, and lower on the delivery pecking order, it is unclear exactly when we will receive our shipments.
Canadian Manufacturers & Exporters (CME) estimated that individual manufacturing businesses that experienced delays during the ports strike were out an average of $207,000 per day. For us, it’s difficult to put an exact figure on it, but the strike, and the ensuing backlog, are costing us tens of thousands of dollars at a time when we are also dealing with inflation and high interest rates.
Our company is adept at developing contingency plans. As a result, we did not have to lay off anyone because of the strike. Our employees are resilient, and we invested a lot of time and resources into ensuring our people are trained in several aspects of the business, so that they can be redeployed where needed when disruptions occur.
But this isn’t just about money. There is a cascading effect to all of this disorder.
We have slowed our rate of hiring. We could be adding more people but cannot because of the constant uncertainty. We can’t purchase new equipment if we don’t know when or even whether we will have the materials. Why would we make a big capital investment when the issue of the day or moment can sideline you?
We can’t. We won’t.
CME and its members are growing increasingly concerned about the rising number and intensity of critical trade infrastructure disruptions. At least four major shutdowns have occurred since 2020, including border crossings affected by striking federal workers, border and rail blockades and the Port of Montreal strikes.
It seems that every means of getting goods to market has seen significant issues – all of which mean manufacturers, and their employees, suppliers and customers are forced to bear a burden entirely outside of our control.
And this could come with an even bigger price tag – the ability of our economy to provide families with good jobs and governments with tax revenue to sustain essential front line services.
We need to ensure such strikes never happen again. Federal authorities and all the parties involved need to discuss a permanent solution to the frequent supply chain disruptions. If we want our country to remain globally competitive, and our economy to provide families with a good standard of living, we have to figure this out.
Manufacturers need certainty and stability. So do the companies and workers who rely on what we make to do their job. They are also on the back foot as they wait for our products that directly affect their ability to run their businesses and earn a living.