St. Lawrence Seaway Management Corporation (SLSMC)

Unifor

Unifor settled at tentative deal with the company on June 30 for a four year collective agreement:

Locals included under that announced tentative:

  • 4211
  • 4319

Those locals rejected the tentative August 1, 2023.

There also remain to be many outstanding issues with locals:

  • 4212
  • 4323
  • 4320

Strike vote for locals voted 99% to strike.

Strike notice for locals 4211, 4212 and 4323 in Ontario and Locals 4319 and 4320 in Quebec issued Oct 18.

Strike began Oct 22.

Unifor's locals involved with the Seaway:

Local Province # members
4212 ON 225
4323 ON 26
4211 ON 55
4212 ON 20
4319 QC 58
4320 QC 152

Locals currently involved in bargaining are Operations and Maine nance employee groups at Cornwall, Beauharnois, and St. Catherines.

Skilled trades include:

  • Carpenter
  • Crane Operator
  • Control Systems Technician
  • Electrician (including trade inspection)
  • Electronics Technician
  • High Voltage Technician
  • Machinist
  • Maintenance Mechanic (including trade inspection)
  • Marine Engineer
  • Millwright
  • Motor Mechanic (Diesel)
  • Painter (including trade inspection)
  • Rigger
  • Welder

These workers maintain the system of locks and navigation infrastructure along the seaway.

19.3

In the CA:

19.3 Employees required to work on their scheduled second day of rest in the work week shall be paid for such work at double their regular or acting rate.

In the 12 Hour shift Agreement

19.3 Employees required to work on their second of three consecutive days of rest (Saturday 0700 - Sunday 0700) shall be paid for such work at double their regular or acting rate.

Seaway

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The seaway includes a system of locks that operate to move cargo and other ships through the seaway.

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Welland Canal section

  • 8 locks
  • The Welland Canal is owned by the Government of Canada and managed by The St. Lawrence Seaway Management Corporation (SLSMC).

Montreal-Lake Ontario section

Located on the St. Lawrence River between Iroquois, Ontario, and Montreal, Quebec

  • seven locks, 5 of them in Canada.
  • Canadian locks: the Iroquois, Upper Beauharnois, Lower Beauharnois, Cote Ste. Catherine and St. Lambert locks
  • locks are owned by the Government of Canada and managed by the SLSMC.

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The Seaway is run by a non-profit company set-up by the government and completely overseen by the government with “members” who are the shipping companies along the seaway. It is twinned with a similar company in the USA.

SLSMC is set-up to charge fees and get subsidies from the government. The purpose is to independently manage the assets and function of the Seaway with the USA counterpart.

It is set-up as a “shared governance” model, but Transport Canada has statutory expenditures and oversight of the company’s finances as outlined in the Canada Marine Act.

Think of it as an independent Crown without that official structure since the minster is just one of the board including the private sector. It is very similar to NAV Canada and the airport authorities. It is a model that attempts to off-load costs from the balance books of the government, but similarly to NAV Canada and other commercialization programs, has failed to reduce costs for the government.

The SLSMC get a mandate regularly from the government, which ended in March, 2023. There is no public statement that it had been extended officially.

The SLSMC is responsible for managing and operating the Seaway, as well as the maintenance, repairs, acquisition and replacement of government-owned Navigation Seaway Assets.

Transport Canada is responsible for funding any SLSMC financial requirements net of revenues.

From what I can tell, it is subsidized more than it is supposed to be:

It got $62.2M and on track to spend $66M. This is less than last $72.7M it spent last year.

Given that it is getting a sizeable subsidy and the minister sits on the board, it seems reasonable to raise issues directly with the minister.

Financial Highlights

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Economic Activity

According to the Department of Transport in the US, the St. Lawrence Seaway creates $12.3B of economic activity

42,319 jobs in Canada are generated by the St. Lawrence Seaway operations in Quebec and Ontario.

66,594 total jobs in Canada and the United States.

Marine activity supported US$4.2 billion (Cdn$5.4 billion) in total personal wage and salary income, and local consumption expenditures for regional residents of the U.S. and Canada.

In 2022, the St.Lawrence Seaway marine cargo and vessel activity generated a total of US$9.5 billion (Cdn$12.3 billion) in total economic activity in the United States and Canada

Total Taxes Generated In Canada (000s)
Provincial/Local (1,000) $884,255
Federal (1,000) $1,247,667
Total $2,231,921

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Wage Growth Calculations

Summary

  • SLSMC wage growth not as fast as private sector skilled trades over a decade from 2011-2021.
  • SLSMC wages did not keep pace with inflation 2021-2022.
  • Tight labour market resulted in significant above inflation growth for private sector skilled trades 2021-2023.

Analysis

It is true that wage growth for SLSMC members has kept pace with inflation over the rounds of bargaining previous to 2021.

However, the more important measure is the comparison with private sector skilled trades wage growth and SLSMC. This is because wage growth of skilled trades between 2011 to 2021 shows faster than inflation increases. The comparison with wage rates in the private skilled trades shows SLSMC falling behind for some of the faster growing trades such as electrician.

The wage growth across the 2021 and 2022 showed slower than inflation growth and slower than private sector trades growth.

  • SLSMC Wage growth since 2011-2021: ~23%
  • Private sector wage growth skilled trades 2011-2021: 22.5% to 27.4%

In addition, since 2021 SLSMC wages have not even kept pace with inflation.

Wage rates negotiated in March 2021. Includes 2022 skilled trades adjustment of an additional 0.7%:

Year SLSMC Settlement (%) Inflation (%) Diff (%) Gen Skilled Trades Growth (%)
2021 2.5 4.38 1.88 4.2
2022 3.2 6.86 3.66 4.3
2023 3.8 3.38 4.8
2024 low estimate of 2 2 4
To catch-up: 10.92 11.3

To just make up the difference on inflation and/or private sector wage growth alone, an average of 5% per year would be necessary over two years. However, 5% per year would not include the wage growth to sustain par with inflation in 2024, which I have put as an extremely low estimate of "2%" above.

Current settlements in the private sector in Ontario are 4% for 2024.

Additional Background data

  • Construction trades wage growth in 2021: 4.2% compared to average of other wage growth of 2.5%
  • Construction trades wage sector in 2022: 4.3% compared with 3% for non-construction.
  • Private sector wage growth in 2022: 4.1%
  • Public sector wage growth in 2022 (outside Bill 124): 2.6%

Historical wage settlements

Unifor wage rates SLSMC:

Class 2011 2021/2022 % growth
1 $22.81 27.94 22%
2 $24.58 30.10 22%
3 $26.53 32.50 23%
4 $28.68 35.13 23%
5 $30.72 37.63 23%
6 $32.77 40.14 23%
7 $34.81 42.67 23%

Private sector wage growth:

Union Trades (Ont) 2011 ($) 2022 ($) % growth
Heavy equipment op. 34.85 44.39 27.4
Electrician 37.52 47.8 27.4
Carpenter 35.39 43.95 24.2
Labourer 30.39 37.22 22.5

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Wage comparisons

Ontario Skilled trades wage rates (Example Set) 2022 Hamilton-Niagara Region

Trade Min Median High
Crane Operator 27.40 31.27 37.00
Millwright 21 30 41.45
High voltage tech 25.00 43.75 49.23
Heavy Diesel Mech 20.56 30.50 41.97
Welder 18.00 25.00 42.27

The average private sector wage settlement of manufacturing and like skilled trades in Ontario for 2023 has been about 4.8% to 5% (ranging from 2 to as high as 9-11%) for the first and second year (2023 and 2024) with a decline in the third year of 4% to 4.8%.

For quick reference, a 2023 wage rate with a 5% estimated average wage settlement would look like this:

Trade Min Median High
Crane Operator 28.77 32.83 38.85
Millwright 22.05 31.5 43.53
High voltage tech 26.25 45.94 51.70
Heavy Diesel Mech 21.58 32.03 44.07
Welder 18.9 26.25 44.38

This settlement information compares to inflation of 6.8% in 2022 and 3.5% to 4% estimated for this year.

Previous Local Settlement

Previous wage settlements in 2022 was 2.5%. Those wage rates are:

Class Step 1 Step 2
1 $27.80 $28.64
2 $28.64 $30.86
3 $30.86 $33.32
4 $33.32 $36.02
5 $36.02 $38.58
6 $38.58 $41.15
7 $41.15 $43.74

An example of the local wage rate with 5% in 2023:

Class Step 1 Step 2
1 $29.19 $30.07
2 $30.07 $32.40
3 $32.40 $34.98
4 $34.98 $37.82
5 $37.82 $40.51
6 $40.51 $43.21
7 $43.21 $45.92

Ontario settlements in 2023 used in this analysis as comparitors. These include similar skilled trades components of their workforce. These were taken from the Government of Ontario settlement tracker of similar employers in related industries for the region.

Since skilled trades are able to work across sectors, settlements and wage rates were taken from the federal government skilled trades wage data for the region.

Industry Employer Name Union Name
Construction London Sewer and Watermain, Curb, Gutter and Sidewalk Contractors Association Labourers International Union of North America (LiUNA)
Construction Construction Site Teamster Employer Bargaining Agency International Brotherhood of Teamsters (IBT)
Construction Pipe Line Contractors Association of Canada International Union of Operating Engineers (IUOE)
Manufacturing Kubota Materials Canada Corporation United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW)
Manufacturing Domtar Inc. Unifor
Manufacturing Northern Cables Inc Ontario Public Service Employees Union (OPSEU)
Other Services Kinectrics Inc Canadian Union of Public Employees (CUPE)
Other Services Canadian Linen and Uniform Service International Brotherhood of Teamsters (IBT)
Other Services Electrical Safety Authority Canadian Union of Public Employees (CUPE)
Other Services Canadian Opera Company International Alliance of Theatrical Stage Employees (IATSE)
Primary Resolute FP Canada Inc. United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW)
Transport, Comms., & Utilities Schenker of Canada Limited Service Employees International Union (SEIU)
Transport, Comms., & Utilities Bruce Power LP by its General Partner Bruce Power Inc. Society of Energy Professionals - International Federation of Professional and Technical Engineers (IFPTE)

Grain shipments

The Seaway moved about $4,873.77 of grain in 2022, which is the largest value good moved and the largest volume of goods moved across the SLS.

Grain is the third largest commodity impacted by our strike when measuring the number of workers in other industries. Steel and iron ore are the two largest in terms of employment. Grain shipped across the SLS affect 2,608 jobs in Canada.

Grain is almost exclusively moved on Canadian flagged ships.

There are no boats inside the lock system and there are ports on each side of the locks that grain can be loaded and unloaded onto other means of transport, namely by rail.

As of Oct 26, 2023, this is where the boats are.

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Grain elevators are located at each end of the St. Lawrence Seaway and between the Ontario and Quebec locks.

  • Port Colborne
  • Johnstown
  • Montreal
  • Sorel
  • Trois-Rivieres
  • Quebec
  • Hamilton
  • Oshawa

Map of grain elevators:

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There are opportunities for other transport options for grain and the strike is not impacting those terminals.

There is no clarity on the capacity on the rail system, however.

Company Boards

Pay increases

Director 2020 2021 2022 2023 %inc
Bowles–CEO 587259 608159 705094 741912 26.334718
Year Bowles–CEO Salary %inc
2020 587259
2021 608159 3.55
2022 705094 15.93
2023 741912 5.22
Total % inc 26.33

Board of Directors

  • Frank Hummell, Ontario Provincial Government
  • Raymond Johnston, Other Members
  • Terence F. Bowles, President and Chief Executive Officer
  • Pierre Préfontaine, Québec Provincial Government
  • Don MacDonald, Grain Members
  • Greg Wight, Domestic Carriers
  • Karen Tippett, Federal Government
  • Paul A. Gourdeau (Chair), International Carriers
  • Bronko Jazvac, Steel and Iron Ore

Officers

  • Terence F. Bowles, President and Chief Executive Officer
  • Pauline LeBlanc, Corporate Secretary

Industry Members 2022/2023

Domestic Carriers

  • Algoma Central Corporation, St. Catharines, Ontario
  • Canada Steamship Lines—A Division of The CSL Group Inc., Montréal, Québec
  • Groupe Desgagnés Inc., Québec, Québec
  • Lower Lakes Towing Ltd, Port Dover, Ontario
  • McAsphalt Marine Transportation Ltd, Toronto, Ontario
  • McKeil Marine Limited, Burlington, Ontario
  • St Marys Cement Inc. (Canada), Toronto, Ontario

Grain

  • ADM Agri-Industries Company, Windsor, Ontario
  • G3 Canada Limited, Winnipeg, Manitoba
  • Cargill Limited, Winnipeg, Manitoba
  • Louis Dreyfus Company Canada ULC, Calgary, Alberta
  • Parrish & Heimbecker Ltd, Winnipeg, Manitoba
  • Richardson International Limited, Winnipeg, Manitoba
  • Sollio Agriculture, Montréal, Québec
  • Viterra Canada Inc., Regina, Saskatchewan

International Carriers

  • Colley Motorships Ltd., Montréal, Québec
  • Fednav International Ltd., Montréal, Québec
  • Gresco Ltée, Montréal, Québec
  • Inchcape Shipping Services, Dorval, Québec
  • LOLA, Québec, Québec
  • McLean Kennedy Inc., Montréal, Québec
  • Navitrans Shipping Agencies (East) Inc., Laval, Québec
  • Robert Reford, div. of the La Perriere Group, Montréal, Québec

Other Members

  • Windsor Salt Ltd., Pointe-Claire, Québec
  • Lafarge Canada Inc., Mississauga, Ontario
  • Heidelberg Materials Canada Limited, Edmonton, AB
  • Redpath Sugar Ltd, Toronto, Ontario
  • Suncor Energy Inc., Calgary, Alberta

Steel And Iron Ore

  • ArcelorMittal Dofasco G.P., Hamilton, Ontario
  • Iron Ore Company of Canada, Montréal, Québec
  • Stelco Inc., Hamilton, Ontario