The ongoing labor dispute at the Port of Montreal has reached a new escalation, as the Maritime Employers Association (MEA) announced a lockout of dockworkers following their rejection of a proposed contract offer. The move came after the Longshoremen’s Union CUPE Local 375 voted against the MEA's "final offer" on Monday, which was intended to end a strike that has been disrupting port operations since late October.

The MEA’s proposed agreement included a cumulative salary increase of over 20% over six years, retroactive to the start of 2024, which it said would bring the average annual compensation for dockworkers to more than C$200,000 (US$143,790). The proposal also offered enhanced pension plans and benefits. Despite the generous terms, the union insisted that the package did not meet their needs, leading to the continuation of the strike action.

The union, representing workers at Termont’s two container terminals, has been on strike in pursuit of higher wages, among other demands. Some workers at other facilities have also refused to work overtime which is further delaying the clearance of cargo build-up at the port. The MEA expressed disappointment over the rejection of the offer, calling it a “negative outcome” and stating that it had “no choice but to declare a lockout” the local media reported.

The lockout has exacerbated disruptions at the port. The Montreal port handles approximately 40% of Montreal’s container traffic through Termont’s facilities. As of November 13, four vessels are anchored at sea, waiting to dock, with one at berth. Operations at the port have been suspended since October 31 and only limited work has been carried out due to a shortage of longshore workers. According to the port authority, just 45 workers are needed to complete the remaining tasks on the docks, but labor shortages have stalled progress.

This disruption is having a ripple effect across Canada's supply chain. Rail operators CPKC and Canadian National have suspended services to Montreal, with CPKC refusing to accept pre-billed and non-billed empties destined for the port. International shipping lines are also re-routing vessels. Maersk, for example, announced that its Barcelona Express service will bypass Montreal and head straight to St. John, while CMA CGM is considering diverting a vessel to Halifax to avoid delays.

The MEA has called for intervention from the Canadian Minister of Labour to resolve the dispute, with numerous industry stakeholders urging for swift action to prevent further economic damage. The situation continues to affect businesses and consumers, with growing concerns over the impact on the Quebec and national economy.