The key issue that’s prolonging a workers’ strike at the ports of British Columbia is linked to a document that details the use of contractual workers and is complete except for one sentence, the union representing the workers said.

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Strike at B.C. ports remains hinged on 'one sentence,' union says Back to video

The International Longshore and Warehouse Union (ILWU), which represents thousands of workers who stopped working at the B.C. ports on July 1, said its authority over work that involves maintaining the ports’ machinery and equipment has been “aggressively eroded” by employers using third-party contractors.

“This is not an issue of cost for the direct employers because they already pay for this work to be done by maintenance contracting companies,” ILWU president Rob Ashton said in a statement on July 4. “Using ILWU skilled trades employees will be more cost effective and will result in a higher quality of work because of their industry experience and competency.”

But the British Columbia Maritime Employers Association (BCMEA), which represents 49 of B.C.’s private-sector waterfront employers, said the union is looking to “aggressively expand” its scope far beyond what is set out in the industry-wide agreement that has been in place for decades.

The association also said the ports experience significant labour shortages on a regular basis and that while the ILWU has the authority to exclusively supply workers in the current agreement, it has consistently been “unable to fulfill the trades work they have jurisdiction over.”

For example, the BCMEA said that, on average, 17 per cent of the jobs that needed to be filled through the ILWU were unfilled last year. If the union isn’t able to fill vacancies, the BCMEA uses contractors, as per the current agreement.

“This lack of labour supply has immediate impacts on terminal productivity,” BCMEA said in a statement on July 4.

It added that resolving the labour shortage issue would benefit both groups, but the ILWU is “solely focused on expanding their jurisdiction to other work.”

In response, the ILWU said it has enough registered trade workers to meet employers’ demands, but BCMEA members refuse to use or train them as required.

In terms of financial demands, the union has asked for higher wages, a one-time payment to tackle rising costs and higher retirement pay, according to a source close to the negotiations. In total, the union has asked for a 21.8 per cent increase in pay over two years, which includes a one-time payment of $8,000 and a $10,000 increase in retirement pay.

The BCMEA has proposed a pay increase of 14.7 per cent over four years. Its proposal doesn’t include a one-time payment, but increases retirement pay by $12,500, the source said.

The median salary for unionized port workers in B.C. last year was $136,000.

BCMEA members are collectively responsible for handling about 16 per cent of Canada’s total traded goods annually, so the strike at the ports has raised concerns among businesses about rising costs.

On July 3, Canada’s largest railway company, Canadian National Railway Co., said the damage inflicted could take months to correct.

The Retail Council of Canada warned that any delays caused by the strike could increase consumer prices since shipping companies charge for the time that goods are on ships, trains, trucks or in container terminals. It added that the impact could be North America-wide since many imported consumer goods enter Canada through B.C. ports.

The Canadian Federation of Agriculture, which represents about 190,000 farmers, said the longer the strike lasts, the worse the impacts will be because companies with vessels delayed in port charge demurrage fees and other penalties that are passed down to farmers.

Canada’s largest mining group, the Mining Association of Canada, said the port shutdowns have put the country’s reputation as a trusted producer of minerals in question.

Devin Dreeshen, Alberta’s minister of transportation and economic corridors, said he wants the federal government to recall Parliament to consider back-to-work legislation to end the strike.

But so far, the federal government hasn’t shown any such intention. Seamus O’ Regan, minister of labour, in a tweet on July 4 urged both parties to “immediately return to the bargaining table and remain there until a deal is reached.”

• Email: nkarim@postmedia.com | Twitter: naimonthefield