Retailers want ‘free-market’ system returned to VanPort
VANCOUVER, — Retail businesses are urging the federal government and the Vancouver Port Authority to rescind a licence provision that requires carriers to pay owner-ops higher rates and fuel surcharges based on a mediator’s proposal earlier this month.
The Retail Council of Canada tendered its “Submission to the Task Force on Transportation & Industrial Relations Issues in the Port of Vancouver” yesterday.
According to Canadian Press, the submission contains 15 recommendations, including a call for officials to reconsider a two-year agreement drafted by mediator Vince Ready and imposed on carriers as a way to end the six-week independent trucker strike at the port which began in June. Reports suggest carriers working the port are required to pay owner-ops as much as 40 percent more if they want to obtain a licence from the VPA.
A three-member task force, established in collaboration with the Federal Minister of Labour and the Province of British Columbia, was created to explore the causes of Vancouver trucker strike. It is expected to recommend a long-term strategy to facilitate industry relations, and ensure the efficient movement of containers at the port.
Kevin Evans, vice-president of Western Canada RCC, says the sector needs to get back to a free market system where customers can make their own decisions on transport providers. He even suggested that some companies would buy or lease their own equipment and establish private fleets in order to avoid dealing with the independent contractors.
“Retailers of all sizes were hard hit by this work stoppage,” says Evans in a release. “Members estimate the incremental costs for larger retailers who were able to use work-arounds could easily hit $100 million in transportation, demurrage and contingency expenses to divert containers to other inland points. Smaller retailers have been at the mercy of the dispute.”
Evans says that the $100 million figure covers only the cost of finding alternative transportation, and not lost sales and productivity.
The Vancouver and Fraser Port Authorities should be empowered to conduct an inquiry into impediments to the effective functioning of “free market dynamics at the ports,” Evans suggests.
The RCC, which represents 9,000 retailers, also recommended that the VPA and Fraser Port Authority be empowered to mandate a 100 per cent reservation system for short-haul carriers; And that the B.C. government issue an unequivocal statement that it will “use all legal means available to ensure individuals and businesses may freely pursue their lawful right to work in British Columbia.”
“Retailers’ confidence in the reliability of the Port of Vancouver has been severely shaken,” Evans says. “Retail Council of Canada supports the formation of the task force and believes all port stakeholders must maximize this opportunity to understand and deal decisively with issues that may threaten the integrity of this vital link in our national transportation infrastructure.”
— with files from Canadian Press
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