Systemic problems need greater review - WP editorial

THE container truckers’ strike at the Port of Vancouver may be over, but the mediated deal reached last week offers only short-term solutions.

The two-year proposal, brokered by mediator Vince Ready, raises hauling rates by 40 to 50 percent and contains relief mechanisms for truckers should diesel fuel costs continue to rise.

But the real benefit of the deal, which was signed by most trucking companies last week, is the creation of a task force to study long-term systemic problems.

The strike, which lasted five weeks, came at a particularly bad time for Canadian special crops shippers, who rely on containers to export a large portion of their business.

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With the Vancouver container terminals at a near standstill, these shippers incurred railway demurrage charges for stranded rail cars, extra costs to reroute shipments through Montreal, and feared loss of market share as foreign buyers turned to sources deemed more reliable.

Farmers found it difficult to ship through a snarled transportation system. Some were unable to take advantage of year-end crop prices, which are usually higher than those offered after the new crop starts coming off.

The strike also came at the time when growers ship the previous year’s crop to open bin space for the coming harvest.

As in almost every strike, innocent bystanders, like farmers and agri-businesses, have much to lose, unless long-term solutions can be found.

The container truckers situation is even more prickly because it is a business-to-business dispute. Most of the truckers involved are independent owner/operators working for trucking companies under contract.

There is no labour-management arrangement and therefore no prescribed system for addressing issues.

The owner of one trucking company acknowledged that “a union-type environment” might have helped negotiations during the first days of the strike.

The task force, which is due to issue its report in 90 days, would do well to advise the establishment of an industry panel that would enable all parties to bring forward key issues.

This proposed panel could explore some type of rate structure, which would make trucking rates apparent to all and establish scheduled reviews.

Such a system must have consistency and predictability as its top priority. That enables businesses to plan accordingly and avoids nasty budgetary surprises. The task force should also outline a problem-solving mechanism that would allow for airing of key issues before they reach the boiling point.

If Canadian agriculture is to continue positioning itself as a high-end supplier with quality assurance guarantees, the Made-in-Canada label must encompass a reliable transportation system.