A five-day lockout at the Port of Montreal cost the agriculture sector more in administrative headaches and damaged reputation than it did in dollars and cents.
“It really didn’t cause us any issues,” said Canadian Wheat Board spokesperson John Lyons.
“We’re not expecting to see any significant detention or demurrage applied by the railways or steamship lines,” said Greg Cherewyk, executive director of Pulse Canada.
The labour disruption began on July 18 when the Maritime Employers Association locked out about 900 members of the Canadian Union of Public Employees Local 375. It ended on July 23 when the two sides agreed to a temporary truce.
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Negotiations to renew the collective agreement, which expired on Dec. 31, 2008, started again on July 26. The two sides have until October to work with a federal mediator on a new contract.
The pulse and special crops industry has calculated that an off-season work stoppage like this typically costs the sector $870,000 during the first week.
That won’t be the case this time due to the speedy resolution, but huge administrative costs still must be dealt with because shippers have been forced to consider diverting cargo to other ports.
“Outside of the daily fire fight associated with keeping your cargo moving, the real cost is the damage we continue to inflict on our reputation,” said Cherewyk.
He said there have been five work stoppages in the transportation sector in the past five years.
“We’re already battling the brand of inconsistency and unreliability when it comes to shipping. Labour disruptions that seem to arise every year do serious damage to our ability to market based on consistent and reliable quality and supply,” said Cherewyk.
He hopes the two parties involved in this latest dispute will be able to reach an agreement on a new contract before the October deadline.
An estimated 20 percent of Canada’s pulse and special crops move through the eastern corridor and most of that volume goes through the Port of Montreal. The bulk of the crop moves during the fall to high-value markets including Europe, the Middle East and North Africa. It is an important port for peas, lentils and navy beans.
