Canadian bakers in the balance: Port strikes threaten supplies and shelf stability

The country’s baking sector is facing significant challenges due to ongoing labour disputes at major ports, notably the Port of Montreal and various West Coast ports. These disruptions are exacerbating existing supply chain issues, threatening the stability and efficiency of bakery operations nationwide.

What’s behind the dispute?

In October, longshore workers at the Port of Montreal – represented by the Canadian Union of Public Employees (CUPE) Local 375 – initiated an overtime strike in response to stalled contract negotiations. The union cited concerns over automation, job security, wages and the need for improved work-life balance, opposing current contracting practices and calling for fair adjustments to meet the rising cost of living.

CUPE union representative Michel Murray emphasised the need to modernise archaic practices at the port, stating, “Solutions are at hand, but there must be a willingness to hear them and be at the table to negotiate them.”

Simultaneously, labour disputes have affected West Coast ports. On 4 November, the British Columbia Maritime Employers Association (BCMEA) initiated a lockout of unionised supervisors at cargo terminals, impacting trade activities at Canada’s busiest port in Vancouver. This action was a response to industrial actions and an overtime ban by members of the International Longshore and Warehouse Union (ILWU) Local 514.

The lockout excluded grain and cruise activities but jeopardised approximately CA$800m in in daily trade.

Impact on the baking industry

The disputes have disrupted the transportation of essential baking ingredients such as flour, grains and sugar. Perishable goods are stranded during transit and delivery schedules are being compromised, threatening bakeries’ ability to meet the demand for fresh, affordable baked products.

“Our members have gone to great lengths to keep bakery displays stocked despite persistent disruptions over the past year,” said Martin Barnett, executive director of the Baking Association of Canada (BAC).

“Yet, this port disruption – following the recent rail strike – introduces extraordinary difficulties, impacting the dependable transport of essential supplies like flour, grains and sugar. Without these critical ingredients, production may be forced to pause, with the potential for empty shelves and increased costs for Canadians.”

Parallels with US port strikes

The labour disputes at Canadian ports mirror recent events in the US, where the International Longshoremen’s Association (ILA) -representing around 45,000 dockworkers – initiated a strike along the East and Gulf Coasts in early October, halting container port operations. Although the Canadian labour disputes are not directly caused by the US strikes, their simultaneous occurrence has intensified supply chain challenges across North America.

The American Bakers Association (ABA) reported closure of the US ports cost the US economy billions of dollars daily and had severe repercussions for both the commercial baking sector and American consumers.​​

The strike, which began on 1 October, was the first of its kind since 1977 and was the result of stalled contract negotiations with the US Maritime Alliance (USMX). The ILA and the USMX reached a tentative agreement after three days, suspending the strike until 15 January 2025 to allow time for further negotiations, including a request for a substantial wage increase of 62% over six years.

“We have temporarily avoided a crisis that would have prevented commercial bakers from delivering essential food to Americans’ tables,” said ABA president and CEO Eric Dell.

“We hope the port operators and longshore workers are able to reach an agreement beyond January that will keep supply chains stable and certain for the long-term.”

The ongoing labour disputes at Canadian ports pose a significant threat to the country’s baking industry’s supply chain stability. Prolonged disruptions could lead to production halts, empty shelves and increased costs for consumers. The BAC is advocating for a swift resolution to these disputes and calls for policy reforms that prioritise the uninterrupted flow of essential goods, particularly in the food and agriculture sectors.