PKM Canada Services: USW Injunction Sought Over Port Picketing

• PKM Canada Services Inc. and the B.C. Maritime Employers’ Association have sued United Steelworkers and the B.C. Federation of Labour for alleged illegal interference with port operations.
• The lawsuit claims secondary picketing at the port violates the B.C. Labour Relations Code and a "hot edict" against handling mine materials violates the Canada Labour Code.
• The dispute stems from a United Steelworkers Local 7619 strike against Teck Resources’ Highland Valley Copper mine, which began on October 24.
• PKM is seeking damages and an injunction, including police enforcement, to stop picketing at its terminal.
• Both the Canada Industrial Relations Board and the B.C. Labour Relations Board have issued interim orders for workers to return to duty or cease picketing at the port.

PKM Canada Services Inc., the operator of a British Columbia port, alongside the British Columbia Maritime Employers’ Association, has initiated legal proceedings in B.C. Supreme Court, alleging unlawful interference with its operations. The lawsuit targets the United Steelworkers (USW) and the B.C. Federation of Labour, claiming their actions have illegally disrupted the port's activities. This legal challenge stems from a strike by United Steelworkers Local 7619 against Teck Resources’ Highland Valley Copper mine, which commenced on October 24 following a breakdown in collective bargaining negotiations.

The ongoing labor dispute has led to significant disruptions at the port, impacting the flow of various commodities. PKM Canada Services Inc. reported that the work stoppage has affected incoming shipments of grain, diesel, and sulfur arriving by rail, as well as numerous truck deliveries. Picketers, identified as members from multiple unions and the B.C. Federation of Labour, have established a presence at the port.

Further escalating the situation, International Longshore and Warehouse Union (ILWU) workers at PKM’s port reportedly declined to handle materials originating from the mine for a period between 4:30 p.m. on November 6 and 3 p.m. the subsequent day. An hour and a half after ILWU workers resumed their duties, ten out of fourteen employees scheduled for the 4:30 p.m. shift reportedly refused to cross the picket line, failing to report for work. PKM stated that the four workers who did arrive had done so before the picket line began, but were unable to perform their duties without the full complement of skilled staff, effectively halting operations for that shift. Picket lines persisted until after midnight that evening and continued for the majority of Sunday and Monday, with longshore workers consistently refusing to cross, resulting in only brief periods of work over the three days. Consequently, at least one vessel was prevented from docking to load its scheduled cargo due to the absence of longshore workers.

The legal action brought by PKM Canada Services Inc. and the British Columbia Maritime Employers’ Association asserts that the picketing activities at the port contravene the B.C. Labour Relations Code, which prohibits picketing at locations not directly involved in the workers' primary dispute. Additionally, the lawsuit contends that a "hot edict" issued by the B.C. Federation of Labour is impermissible under the Canada Labour Code. This "hot edict," declared on a Friday, specifically urged unionized workers to refrain from handling Teck’s mining materials.

B.C. Federation of Labour President Sussanne Skidmore characterized the "hot edict" as an "exceptional step," explaining that it was necessitated by the employer's perceived strategy to "wait out their workers and operate around this strike and B.C.’s anti-scab law." Skidmore emphasized the collective responsibility to challenge this approach. PKM is seeking financial damages from both the United Steelworkers and the B.C. Federation of Labour for obstructing the terminal, in addition to requesting an injunction, which would include police enforcement, to prevent further picketing at the facility. An application for this injunction is slated for a hearing on Thursday morning.

In response to the escalating dispute, regulatory bodies have issued interim directives. On Saturday, the Canada Industrial Relations Board (CIRB) mandated that ILWU workers return to their duties. The B.C. Labour Relations Board followed suit on Sunday, issuing a similar interim order instructing United Steelworkers members to cease picketing activities at the port. Notably, B.C. Federation of Labour President Sussanne Skidmore was observed among the picketers during this period.

These developments at the port coincide with a separate lawsuit initiated by Teck’s Highland Valley Copper subsidiary on Monday. Teck’s legal filing alleges that picketers at both the mine site and the port have established a blockade, engaging in intimidation, threatening behavior towards employees and contractors, and causing damage to mine property. Teck’s lawsuit also seeks an injunction to halt the picketing at the port and to address what it describes as illegal activities at the mine’s picket line. In a statement posted on the B.C. Federation of Labour's website, Scott Lunny, the western Canada director for USW, highlighted that the union’s strike vote was unanimous and that Teck was experiencing record profits.

This ongoing legal battle, centered on the PKM Canada Services USW injunction request, serves as a critical examination of the permissible boundaries for union strike tactics within Canada's dual federal and provincial labor law framework. The case specifically scrutinizes the legality of secondary picketing, as defined by the B.C. Labour Relations Code, and the use of "hot edicts" under the Canada Labour Code. The outcome will likely provide important clarification on the extent to which unions can extend their industrial action beyond the primary employer and directly impact third-party operations.

For legal practitioners, this dispute offers valuable insights into the judicial and regulatory responses to disruptive union activities affecting supply chains and unrelated businesses. The requests for injunctions against picketing and for financial damages from the United Steelworkers and the B.C. Federation of Labour underscore the potential for significant legal repercussions when strike actions are perceived to overstep established legal limits. Lawyers advising clients on labor disputes should closely monitor this case for precedents regarding the issuance of injunctions to mitigate interference with third-party operations and for potential claims arising from such disruptions.

This case clarifies the legal limits of union strike tactics, specifically secondary picketing and 'hot edicts,' under Canadian federal and provincial labor law. Lawyers advising clients on labor disputes should monitor this case for precedents regarding injunctions against disruptive union actions affecting third-party operations and supply chains, and for potential damages claims arising from such interference.

Source: Original reporting via Courthouse News Service