A strike is looming for more than 9,000 workers at the Canada Border Services Agency (CBSA), which could disrupt supply chains in North America.
The work stoppage for customs and immigration agents could happen as early as Thursday following the recent release of a federal Public Interest Commission report, which set guidelines for a new collective agreement and gave workers the legal right to strike.
CBSA staff are represented by Public Service Alliance of Canada (PSAC) and the Customs and Immigration Union (CIU).
“The clock is ticking,” Sharon DeSousa, PSAC national president-elect, said in a speech press release. “At every opportunity, Trudeau’s Liberal government has refused to put the needs of workers first, and time is running out to avoid drastic labor market action.”
Mediation sessions between the union and federal officials begin Monday. CBSA staff, represented by the PSAC and CIU, voted 96% in favor of accepting the strike earlier in May.
“Taking action is always a last resort, but the overwhelming support for our strike mandate shows that we are willing to do whatever it takes to win a fair contract,” said Mark Weber, CIU National President , in a statement.
Employees have been without a contract for more than two years, union officials say.
Key issues being negotiated by PSAC and CIU include higher wages in line with other law enforcement agencies across the country, flexible teleworking and remote work, fair retirement benefits and stronger protections around discipline, technological changes and work hours, thus achieving a release.
CBSA customs and immigration agents are responsible for overseeing more than 100 land border crossings across Canada, as well as airports and seaports.
In addition to customs and immigration officials, CBSA personnel include intelligence officers, investigators and non-uniformed personnel.
In addition to customs and border agents, PSAC represents more than 245,000 government employees across Canada.
Mike Burkhart, vice president for Canada at CH Robinson, said the Canadian government considers most customs workers essential, “which means they must continue to provide certain services even during a strike.”
“What we are then preparing for is a potential work slowdown, with employees staying on the clock and performing all tasks optimally,” Burkhart told FreightWaves in an email.
Burkhart said the biggest impact would be on truck freight going to Canada.
“A border agent must be physically present to check the customs paperwork and scan the barcode on it,” Burkhart told FreightWaves. “We manage more than 650,000 shipments across the Canadian border every year, so we can say from experience that a delay in this process can cause wait times of four to five hours. That is what we saw during the 2021 strike.”
In August 2021, 9,000 CBSA staff members started work strike for almost two days, leaving trucks waiting in lines for hours at border crossings across Canada.
The PSAC and CIU reached an agreement with the federal government on August 6, 2021 that included salary increases over four years, averaging 2% per year. According to the unions, it also included protection against excessive discipline in the workplace.
Burkhart said that if another strike begins on Thursday, these delays could have a domino effect on supply chains, particularly disrupting industries such as the automotive industry, which rely on just-in-time delivery of parts and components .
“Many of our automotive customers view North America as one interdependent supply chain. So parts that travel to Canada often come all the way from Mexico, and one late part can shut down an entire production line,” Burkhart said. “Ocean, air and rail freight would be less affected by a strike because the majority of those transactions are handled electronically.”
For cross-border operators, the potential CBSA strike is another headache on top of a possible strike by rail workers CPKCwho recently voted in favor of a work stoppage action.
The Canada Industrial Relations Board is investigating whether a CPKC workers’ strike could have a negative impact on public safety in the country and has postponed the possible start date.
In the event of a strike by CBSA employees, Burkhart advised shippers to talk to their logistics providers about contingency plans.
“Stock up on essential supplies in advance. Consider diverting freight away from busier intersections like Windsor and away from peak traffic times. To minimize the amount of freight that needs to be transported by truck, you can convert your less time-sensitive freight to rail. For high-value and especially urgent freight, you should start by lining up air transportation options,” Burkhart said.
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