Several thousand port workers have gone on strike at Canada's busiest port in Vancouver in the western province of British Columbia after failing to reach a deal with the government to renew an industry-wide contract that expired in March.
The strike led by the International Longshore and Warehouse Union Canada (ILWU Canada) in cooperation with the British Columbia Maritime Employers Association (BCMEA) unfolded on Saturday after months of talks failed to yield a deal on a new contract that could cover the workers' grievances.
"Unfortunately, a tentative agreement could not be reached," said BCMEA, which had partaken in the talks along with the ILWU Canada.
Union leadership "has not taken this decision lightly, but for the future of our workforce, we had to take this step," said Rob Ashton, ILWU Canada's president.
At the core of the dispute lies such sticking points as port automation, the rising cost of living, and outsourcing.
The strike that covers about 7,500 employees at 30 terminals in the province would have repercussions in the United States and other markets that receive goods through Canada, thus potentially disrupting the global freight transport.
Warning about domestic consequences, the Canadian Federation of Independent Business (CFIB) said in a statement that the walkout could have serious impacts on Canada's economy and small businesses as well.
On Wednesday, the ILWU Canada said it had issued a 72-hour strike notice. The BCMEA, for its part, said it had "made repeated efforts to be flexible and find compromise on key priorities" without success.
"We appreciate the assistance of federal mediators in supporting the parties and we remain open to any solutions that bring about a balanced agreement," said the union, which represents ship and port owners and terminal operators.
In a Saturday Twitter post, Canada's Minister of Labor Seamus O'Regan Jr. said the BCMEA and ILWU Canada remain at the bargaining table working toward a deal. He added that the federal mediators continue to support the parties in their negotiations.