Letter from the Editor

By Mark Szakonyi

The question is whether Parliament can enshrine C-39 ahead of the expiration of two major labor contracts

Canada’ s desire to diversify trade away from what it views as a belligerent US while unleashing its export potential has helped revive container port projects on both coasts. Now, the government led by Prime Minister Mark Carney is trying to establish guardrails to prevent labor-employer relations from revisiting the numerous disruptions to container shipping in recent years.

The Liberal Party government argues that the 16 major transportation disruptions over the last seven years have damaged Canada’ s reputation. In response, Transport Minister Steve MacKinnon on Sept. 21 introduced legislation known as C-39 that would make the first significant change to the country’ s Labor Code in decades and speed regulatory approvals for infrastructure projects.

The question is not whether Carney, enjoying immense national popularity thanks to an“ elbows up” policy to jabs from US President Donald Trump, will be able to push the legislation through Parliament. Rather, it is whether Parliament can enshrine C-39 ahead of the expiration of two major labor contracts.

The contract between International Longshore and Warehouse Union( ILWU) Canada and the British Columbia Maritime Employers Association( BCMEA) expires in March 2027, with negotiations expected to begin in November. Canadian National Railway and the Teamsters Canada Trade Conference began bargaining Sept. 14 over a contract that expires at the end of 2026.

The idea of creating a special mediator role within C-39 was the top recommendation from a government-backed study into multiple work stoppages at the ports of Vancouver and Prince Rupert in 2023 and 2024. If the proposed legislation was in effect today, the ILWU and BCMEA would already be negotiating. In cases where the length of the contract is five years, or if there was a strike, lockout or forced arbitration in the last negotiating cycle, both sides would have to be at the table at least six months before expiration.

Currently, should a standoff develop, the Minister of Labour can refer questions to the Canada Industrial Relations Board( CIRB) or direct the board to act, such as ending a strike or lockout. C-39 outlines a new path.

“ First, the consideration of a report from a special mediator, and second, the minister has to be of the opinion that a strike or lockout would adversely affect the national interest based on a national impact assessment,” a senior government official said during a Sept. 21 media briefing. Only then could the CIRB force resumption of work through a temporary collective agreement or by imposing a binding resolution. Labor unions have decried C-39 as eroding the right to strike; the Conservative Party says it is still reviewing it. The legislation was expected to be introduced in May, but political resistance, including within Carney’ s own party, delayed the rollout, according to one port labor source.

On the same day MacKinnon introduced C-39, ILWU Canada convened the Anti-Automation Summit at the Maritime Labor Centre in Vancouver. After receiving“ disturbing news” of the legislation while at the summit, Dennis Daggett, vice president of the International Longshoremen’ s Association( ILA), said it made his“ skin crawl when governments strengthen the hand of multinational corporations at the expense of their own working people,” according to a post on the ILA’ s Facebook page.

One advertisement for the summit pictured DP World, operator of BC terminals and developer of a mega-terminal in Montreal, as a puppet master pulling strings connected to cranes and ships.

In the face of rising US tariffs and perceived attacks on its sovereignty by Trump, Carney announced last fall a goal of doubling Canadian exports to non-US markets within the decade and expanding freight infrastructure to handle the volumes. In late August, Vancouver’ s decades-inthe-making Roberts Bank Terminal project was added to a list of infrastructure projects prioritized for national interest. Last year, the Carney government added the Contrecoeur Terminal to the same list of projects.

As Canada has sought to reduce its dependence on US trade, fewer US shippers are using Canadian ports. Nearly two decades ago, Prince Rupert began growing its container volumes by attracting US importers seeking an alternative to oft-congested Southern California ports. Now, Canada containers outnumber US volumes.

Before the COVID-19 pandemic, US volumes made up at least 20 % of Vancouver’ s throughput. Now, it’ s about 10 %, with Canadian volumes offsetting the decline, according to Vancouver Fraser Port Authority CEO Peter Xotta.

Conversely, two major Canadian retail shippers said on the sidelines of the Halifax Supply Chain Forum Sept. 9-10 that they are reducing reliance on US suppliers and importing less through US ports, when possible.

Cost, speed, reliability— and now, patriotism— seem to factor into Canadian cargo routing decisions.

email: mark. szakonyi @ spglobal. com

4 Journal of Commerce | October 5, 2026 www. joc. com