The government of Canada has stepped in to bring an end to the port strikes that have been plaguing logistics throughout the country, by ordering the Canadian Industrial Relations Board (CIRB) to intervene.

The Canadian Labour Minister directed the CIRB to extend the collective bargaining agreements in the dispute until new deals are finalised, which will impose “final and binding arbitration” on the parties.

The Minister said this week “The responsibility for these negotiations belongs to the parties alone, but the impacts are being borne by all Canadians. We simply cannot afford this uncertainty and instability at this moment. Work stoppages are significantly impacting our supply chains, jobs, and economy.”

The impact of the strikes has disrupted ocean freight and rail freight, with Montreal being the catalyst. A series of walkouts have been witnessed at its port, along with a union enforced overtime ban and an ongoing strike at two of its major terminals since October 31st.

Canada’s logistics plight was then worsened when port workers walked out on the Canadian west coast, which has now continued indefinitely for over ten days.

Vessel queues have started to form outside both Montreal and Vancouver ports, some major rail terminals have suspend operations, and congestion is now being witnessed at Halifax port, which is not directly impacted by a labour dispute itself.

The past few weeks has seen Canadian logistics slow down considerably and congestion build, which has been estimated to be costing the economy almost US $1 billion per day.

Therefore, if the government intervention brings a quick end to the disputes, it will be welcome news for all.