IPG Boss Writes Minister of Labour
By 250 News
Thursday, January 01, 2009 04:10 AM
Prince George, BC. – While the two sides in the labour dispute that threatens to close B.C.’s ports say they will return to the bargaining table Saturday, there is still concern about the damage a threatened strike could cause.
The workers have been without a contract sine March of 2007. The ILWU 514 could go on strike after serving 72 hour strike notice. The BCMEA Employers Association could lock out the workers.
At this point, neither a strike nor lockout are in the cards. None the less, the situation may see some shippers diverting their containers away from B.C. and to the US West Coast ports. While COSCO shipping lines won't make a decision to divert from Prince Rupert until strike notice has been delivered, the loss of any arriving container ships would be bad news for Prince Rupert and bad news for Prince George and it’s inland intermodal facility.
The impact on Prince Rupert, and subsequently the communities which are trying to launch a back haul business are among the reasons why Initiatives Prince George has sent a letter to the Federal Minister of Labour, Rona Ambrose. Here is a copy of that letter:
Dear Minister Ambrose:
I am writing to express our concerns regarding the prospective impact to the Prince George and Northern British Columbia economy of unresolved negotiations between the British Columbia Maritime Employers Association and International Longshore and
Warehouse Union (ILWU).
By way of background, Initiatives Prince George Development Corporation is the Economic Development Authority for the City of Prince George and surrounding region. Prince George is a modern, vibrant City of 80,000 people located in north central British
Columbia. Prince George serves as Northern British Columbia’s transportation, resource industry, health care, education and retail service hub.
Prince George has very strongly supported the development of the Fairview Container Terminal the Port of Prince Rupert in opening up Northern British Columbia as a new international trade corridor that will catalyze job and wealth creation.
Initiatives Prince George has worked very hard with our partners including CN, Prince George Airport Authority, and the Prince Rupert Port Authority (among others) to grow economic development opportunities for Northern British Columbia.
In 2006, Initiatives Prince George released the ‘Northern British Columbia Container Opportunities Study’ which identified the business case for an inland port handling facility in Prince George to help feed the Port of Prince Rupert. The analysis recognized
forest export product demand of over 60,000 40 ft containers per year bound for growing Asian markets, creating 856 person years of employment and generating $44.2m of wages in Northern British Columbia. The report also identified critical benefits to the
region caused by the availability of shipping by sea container, including enhanced export capabilities of communities along the Northern British Columbia corridor that would aid long term growth and diversification in a traditionally forest dependent region.
In November 2007, Prince George celebrated the opening of CN’s $20 million Intermodal and Distribution Centre. One year later the first regular shipments of pulp bound for Asian markets are originating in Prince George providing significant cost and
efficiency benefits to regional manufacturers. Prince George’s opportunities moving forward are based on the investment community’s continuing confidence in Northern British Columbia corridor opportunities. Investor confidence levels will be strongly
influenced by the level of service provided by the Port of Prince Rupert which, to date, has been superior. Volumes have also been building in recent months at the Port of Prince Rupert.
We are extremely concerned that a labour disruption could result in the long-term loss of hard-won trade through Canadian West Coast ports – particularly at the Port of Prince Rupert -- which may never be recovered. This could have significant impacts on Prince George’s and Northern British Columbia’s recent economic diversification and growth efforts which are now beginning to show positive results. These gains are tenuous, and new industry confidence in this corridor must be preserved. This labour disruption could have major and irreversible consequences if not resolved immediately.
We hope the BCMEA and ILWU 514 will quickly find common ground and resolve their remaining issues.
We respectfully ask the Federal Government for its active involvement to prevent pending disruptions at Canada’s West Coast ports.
Sincerely,
Tim McEwan
President & Chief Executive Officer
Initiatives Prince George Development Corporation
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She just ordered the union in the Ottawa bus strike situation to allow members to take a vote.
I understand bargaining is still going on here, so let's hope for the best. Shipments have already been diverted, though.
Vancouver is still by far the largest port of entry on the Canadian West Coast, so they carry the clout. Houston, the CEO of the Port wrote the Minister from Edmonton a few days ago indicating the economic impact of a strike.
A strike in 2005, no contract since 2007, a potential strike in 2009. What is happening to cause such a lack of assurance to the users of our facility. Whose responsibility is this? Why is this being continually dealt with in a reactive fashion rather than proactive fashion? It takes more than having the physical facilities in place to run a smooth operation.