An ongoing strike across the province’s ports has created a multi-week backlog on orders for B.C. manufacturer AMPCO Manufacturing Inc.
In a Monday interview, the company said it had a large shipment of parts and goods aboard a cargo ship that it was unable to unload. Those products are now back on their way back to Shanghai — possibly creating a ripple of costs and delays for multiple other companies.
“We deal with a lot of customers that build products, and they have deadlines for their customers,” said Dann Konkin, CEO of AMPCO Manufacturing.
“We have a requirement to meet these deliveries on time for our clients,” he added.
“It’s frustrating for our staff too, they want to get product out and we are stuck in the middle.”
According to the BC Maritime Employers Association, the impact of the strike — now in its 10th day — is spilling over internationally as U.S. port workers refuse to handle containers rerouted from Vancouver to Seattle.
AMPCO Manufacturing, which makes medical devices, heavy trucks and warning labels, has major Fortune 500 companies as clients across Canada, the United States and Mexico.
“They are aware of the issue; however, they are saying, ‘You are the supplier, you have the requirement and responsibility to make sure we have product on our floor when we need it,’” Konkin said.
An alternative delivery method — such as a plane — could be seven times more expensive than a ship.
“It may mean we may have to move to air freight. A cubic metre of goods by ocean, from Shanghai to Vancouver, is around $500,” explained AMPCO Manufacturing customs and logistics analyst Steve Magee.
“If we have to fly, (the shipment) is now around $3,500.”
International Longshore and Warehouse Union International president Willie Adams told CNBC last week that members of the U.S. West Coast chapter of the union won’t be unloading Canadian-bound cargo in solidarity with the striking workers in B.C.
Adams told a rally in Vancouver on Sunday that anyone who thought they could offload Canada-bound cargo at Tacoma, Seattle, Oakland or Los Angeles should know that it “ain’t happening.”
The workers and their employer held a round of bargaining over the weekend, the first talks since negotiations collapsed one week ago, but neither side is saying when, or if, more talks are planned.
About 7,400 members of the ILWU Canada have been on strike since July 1, idling all cargo handling at about 30 ports, including the Port of Vancouver, Canada’s busiest harbour.
Jurisdiction over maintenance, as well as improved wages and language to prevent contracting out and automation are key issues in the dispute.
The employers association said in its statement Monday that economic repercussions have been escalating.
“With approximately $19 billion of containerized cargo moving through ports of Vancouver and Prince Rupert every month … the potential impact of ongoing strike action on transpacific cargo flows is immense.”
The employers association said in a previous statement, issued after the mediated talks on Saturday, that it made an offer to address dock workers’ demands to expand union jurisdiction over regular maintenance work at terminals.
The union has not responded publicly to the association’s proposal, but a union leader told the rally on Sunday that control over maintenance is a “line in the sand,” and although longshore workers can’t prevent automation, they, not contractors, should make repairs if robots break.
Adams said Sunday that he was encouraging workers from around the world to meet ships coming to their docks and show they are united with Canadian strikers.
Meanwhile, Magee said Ampco Manufacturing is struggling to help its clients meet their “just-in-time” manufacturing needs.
“The idea is to have the goods at the point of use just before it’s needed,” Magee said.
“If we start to get backed up, we won’t have the parts and (our clients) might have workers with nothing to do.”
Like other impacted stakeholders, Ampco Manufacturing is urging the federal government to step in and end the job action. Konkin said while he understands and respects the port workers’ fight, Canadian businesses will start to suffer immensely if the strike continues to last.
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“I believe the government has a role here. Industries rely on doing business and I believe the government has to step in and support businesses like mine and the (customers) as well,” Konkin said.
“I am not worried about the long-term effects right now, however, if the strike continues, we will have to take a serious look at the people working with us. We have good workers, and we don’t want to lose them. Our costs will certainly increase as well.”
B.C. Premier David Eby said Monday that port workers need to be “treated fairly,” standing against federal intervention that would force them back on the job.
“They need to work hard at the table to ensure a fair deal because our ports are essential for all Canadians and not just British Columbians,” he said.
Canadians across the country might see the price of goods push higher the longer the strike goes on, experts have said. The work stoppage is disrupting $500 million in goods every day, industry group Canadian Manufacturers & Exporters estimates.
— with files from The Canadian Press and Global News’ Aaron D’Andrea
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