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Labour Minister Steven Mackinnon has put an end to the work stoppages at Quebec and British Columbia ports by ordering binding and final arbitration.

Mackinnon said on Tuesday the negotiations had hit an impasse and the economic and reputational damage to Canada as a reliable trade partner was in jeopardy.

“If these work stoppages go on, the impacts will only worsen, and our well-earned reputation for reliability will be put at risk because of these impasses, more than $1.3 billion in value of goods is affected every day,” he said, in a press conference in Ottawa.

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The British Columbia Maritime Employers Association issued a lockout to dockworkers at the Port of Vancouver and Port of Port of Prince Rupert on Nov. 4, after the International Longshore and Warehouse Union Local 514 issued a strike notice. Nearly 1,200 workers at the Port of Montreal were locked out on Sunday, after the union representing the workers rejected the latest offer by the Maritime Employers Association.

This is the second time this year the labour minister has used his powers under section 107 of the Canada Labour Code to order binding arbitration to end labour disputes. In August, Mackinnon used the same mechanism to end the lockouts at Canadian Pacific Kansas City Ltd. and the Canadian National Railway Co., by referring the negotiations to the Canada Industrial Relations Board (CIRB).

Mackinnon noted that he expects Tuesday’s decision will spark “debate” about the use of the measure.

“It’s certainly not something I take lightly,” he said. “The duration of the disputes is not clear, and there is real economic health and other risks posed to Canadians, that I take that responsibility extremely seriously. And Canadians, as I said, have limited tolerance right now for economic and health harm.”

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Business groups welcomed news of the announcement by the federal government, who had previously warned of the negative impact such work stoppages would have on the Canadian economy.

In a statement, the Canadian Federation of Independent Business, a business advocacy group that represents 97,000 members, said it was “relieved the federal government has finally stepped in.”

“A lengthy work stoppage has harmful consequences for the whole economy that are disproportionate to the benefit any of the parties involved can obtain,” said Jasmin Guenette, national affairs vice-president at CFIB. “We cannot have work stoppages paralyze Canada’s supply chains every time negotiations are at an impasse. Moving forward, government must make ports an essential service, so they remain fully operational at all times.”

The Retail Council of Canada also thanked the minister for the decision after it warned the disruption would have substantial impacts on exports of Canada’s biggest producers in sectors like agriculture, forestry, mining and manufacturing.

“The disruption these disputes caused to retail supply chains were severe, and all at our busiest time of the year,” said Matt Poirier, vice-president of federal government relations at the Retail Council of Canada, said in a statement. “It will take weeks for our sector to recover but Canadians can rest assured that they will continue to get all their essential retail goods in the days ahead.”

Mackinnon could not confirm what day work at the ports are expected to resume, but noted it could be “a matter of days.”

“But again, the CIRB is an independent entity, and it will pursue its process,” he said.

• Email: jgowling@postmedia.com

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