Montreal Port Secures Five-Year Deal for 1,200 Dockworkers After Disruptions to Canada–U.S. Supply Chains

After years of difficult negotiations, strikes and disrupted cargo shipments, the Port of Montreal is entering a more predictable period. A new five-year collective agreement covering more than 1,200 longshore workers has been established, offering businesses greater certainty at one of Canada’s most important international trade gateways.

The Maritime Employers Association announced the agreement on October 16, 2026, following binding arbitration ordered through federal intervention. The contract covers 2024 through 2028, settling a dispute that had affected shipping schedules, trucking operations and supply chains extending into the United States.

For manufacturers waiting on imported components, farmers exporting crops and workers depending on reliable shifts, the development offers welcome stability. Yet the agreement also raises important questions about labour relations, the cost of disruptions and how Canada can protect its trading infrastructure from future interruptions.

The Five-Year Agreement Covers Workers Through 2028

The Maritime Employers Association confirmed that a new collective agreement covering more than 1,200 dockworkers at the Port of Montreal is moving toward implementation. The arrangement applies to the five calendar years from 2024 through 2028, establishing employment conditions, compensation and other contractual provisions. The workers are represented by the Canadian Union of Public Employees, Local 375, while the employers’ association negotiates on behalf of shipping companies and terminal operators.

Although described as a five-year agreement, it does not provide five additional years of protection beginning in October 2026. Its term starts retroactively in January 2024 and runs through December 2028. That distinction is important for companies planning transportation contracts and for workers looking toward their next bargaining round. The association’s president, Nicola Dolbec, welcomed the resolution as an opportunity for businesses, employees and communities to plan with greater confidence after prolonged uncertainty surrounding port operations.

Federal Arbitration Ended a Dispute Negotiators Could Not Resolve

The new agreement was determined through binding arbitration rather than a conventional negotiated settlement approved by both sides. In November 2024, then-federal Labour Minister Steven MacKinnon used Section 107 of the Canada Labour Code to direct the Canada Industrial Relations Board to restart operations and move the dispute toward arbitration. The board subsequently ordered port operations to resume on November 16, ending a damaging lockout while leaving the underlying contract dispute unresolved.

Negotiations continued after cargo handling restarted. Employers and the union entered a 90-day mediation process beginning in November 2024, later extending discussions into March 2025. On March 19, the special mediator concluded that further talks were unlikely to produce an agreement, triggering the mandatory arbitration process. The October 2026 announcement closes that lengthy chapter. It also illustrates the tension between protecting critical supply chains and preserving workers’ ability to negotiate their own employment terms without government-imposed outcomes.

Work Schedules Were a Major Source of Conflict

The dispute was never simply a disagreement over hourly wages. During the November 2024 lockout, union representative Michel Murray identified scheduling and work-life balance as central concerns for longshore workers. The union argued that predictable working arrangements were necessary for a sustainable collective agreement. For employees whose shifts depend on vessel arrivals and changing cargo demands, uncertain hours can affect childcare, family commitments and the ability to plan ordinary life outside the terminal gates.

Employers emphasized operational flexibility and competitive compensation. Their rejected proposal included annual wage increases of 3% for four years and 3.5% for two subsequent years, along with existing benefits. Union members rejected that offer by 99.7%, signalling how far apart the parties remained. Those proposed increases should not be confused with the terms ultimately awarded by arbitration. The October 16 announcement confirmed that compensation and working conditions had been determined but did not publicly disclose the detailed wage schedule or how individual scheduling grievances had been resolved.

Strikes and Lockouts Disrupted Major Container Terminals

The confrontation escalated through several stages in 2024. A three-day strike beginning September 30 disrupted the Viau and Maisonneuve terminals, operated by Termont, which together handled approximately 40% of Montreal’s container traffic. On October 10, dockworkers began refusing overtime, creating further operational difficulties even where terminals remained open. An indefinite strike at the same two terminals followed on October 31, extending uncertainty for shippers already struggling to arrange dependable deliveries.

The situation worsened after union members rejected the employers’ final offer. On November 10, the Maritime Employers Association declared a lockout affecting nearly 1,200 workers and bringing most longshoring activity to a halt. Essential services unrelated to longshoring continued, but regular container handling faced significant restrictions. The disruption unfolded while ports on Canada’s West Coast were experiencing a separate labour dispute, reducing the alternatives available to shippers. Federal intervention eventually restarted operations, but vessels, containers and customers had already been affected.

Food, Medicine and Other Critical Shipments Faced Delays

The operational consequences became visible almost immediately. Following the first day of the September 2024 strike, the Montreal Port Authority reported approximately 11,549 twenty-foot equivalent units of delayed container traffic and five container ships waiting because of disruptions. Its operational snapshot also identified 300 refrigerated containers carrying food or other temperature-sensitive products, alongside 12 TEUs of critical pharmaceutical and medical goods. Those figures represented an early assessment, not the total impact of the entire labour dispute.

For companies depending on refrigerated products, delay can be more complicated than simply waiting for a truck. Containers need temperature control, storage space and coordinated onward transportation. Pharmaceutical and medical shipments may have additional handling requirements. The port authority warned that businesses had limited alternatives when so much container capacity became unavailable simultaneously. Although not every delayed shipment resulted in spoilage or a shortage, the incident demonstrated how quickly disruptions at one transportation hub can threaten the schedules of businesses far beyond the waterfront.

Montreal Connects Canadian Businesses With U.S. Markets

The Port of Montreal is more than a regional shipping facility. According to the port authority, its transportation network provides access to a potential market of roughly 110 million consumers across Canada and the United States. It can reach approximately 40 million consumers within one day by truck and another 70 million within two days by rail. That extensive reach explains why interruptions in Montreal can affect distribution networks and businesses located hundreds of kilometres away.

The connection with the United States is particularly important. Montreal’s rail and highway infrastructure links international cargo arriving through the St. Lawrence River with Canadian industrial centres and markets in the American Midwest and Northeast. The port’s 2024 statistics attributed approximately 8% of its domestic and inland trade distribution to the U.S. Midwest, alongside significant volumes serving Quebec and Ontario. These figures do not mean every shipment crosses the border, but they demonstrate how closely Canadian maritime transportation is integrated with the wider North American economy.

Trucking and Rail Companies Felt the Disruption Beyond the Docks

Longshore workers may be the most visible employees at a port, but they are only one part of its transportation network. Montreal has its own dockside rail infrastructure connected to Canadian National and Canadian Pacific Kansas City, while trucks move containers between terminals, warehouses and regional distribution centres. During 2024, approximately 60% of the port’s inland transportation activity was handled by truck and 40% by rail, according to its annual operating figures.

When container handling stops, those supporting businesses can face cancelled pickups, changed rail schedules and idle equipment. During the November 2024 lockout, Montreal Port Authority chief executive Julie Gascon warned that more than 10,000 logistics workers could be affected indirectly. The Quebec trucking association also highlighted the impact on carriers serving the port, where roughly 2,000 trucks moved through on a typical operating day at the time. Shipping company OOCL separately advised customers that intermodal rail services were affected, illustrating how one labour dispute could disrupt several transportation systems.

The Previous Shutdown Took Weeks to Fully Recover From

Restarting cranes does not instantly restore a disrupted supply chain. When federal authorities ordered operations to resume in November 2024, the Montreal Port Authority warned that clearing terminal backlogs could take several weeks. Containers needed to be reorganized, vessels accommodated and rail and trucking schedules restored. Shipping companies also had to adjust plans made during the stoppage, including cargo that had been held elsewhere or diverted to alternative gateways.

The scale of the recovery became clearer in January 2025, when the port authority announced that activities had returned to normal. Over the recovery period, teams handled 52 container vessels and nearly 198,000 TEUs, moved 137 railcars of grain for CanEst and Viterra, and welcomed approximately 2,300 truck drivers daily. Those figures reflect the recovery after the 2024 dispute, not new congestion in October 2026. They demonstrate why an agreement offering longer-term labour stability can matter even when day-to-day port activity appears normal.

Cargo Volumes Show Why Reliability Matters Economically

Montreal’s importance is evident in its latest completed annual results. The port handled 34.3 million tonnes of cargo in 2025, including approximately 1.52 million TEUs of container traffic, an increase of 3.6% from the previous year. Liquid bulk shipments reached 13.45 million tonnes, while dry bulk accounted for 8.57 million tonnes. The port also generated C$155.4 million in operating revenue, up from C$143 million in 2024.

Those figures reflect a large and diversified business, but they require context. Total cargo tonnage declined slightly in 2025 because of several pressures, including weaker economic activity, lower water levels and changing trade patterns. The increase in containers is evidence of resilience, not proof that the new collective agreement had already improved performance. Nevertheless, predictable labour relations can make it easier for the port to retain shipping services, compete for additional cargo and convince international customers to plan future transportation through Montreal.

Agricultural Exporters Gain Greater Certainty for Grain Shipments

Agriculture is another major part of Montreal’s trade network. In 2025, the port handled approximately 4.3 million tonnes of grain, making agricultural commodities an important component of its dry bulk business. Facilities include a large grain terminal historically operated by Viterra, now owned by Bunge, with approximately 260,000 tonnes of storage capacity, as well as CanEst’s 68,000-tonne grain facility supporting crop handling and containerized agricultural shipments.

Not every grain operation stopped during the 2024 container strikes, and it would be misleading to suggest that all agricultural exports were blocked. Nevertheless, grain shippers rely on dependable rail movements, port equipment and vessel schedules. Delays can complicate delivery commitments with overseas customers and disrupt the movement of crops from inland elevators. A more predictable labour environment gives farmers, grain handlers and transportation companies a stronger basis for planning shipments. The benefit is especially relevant when harvest volumes, international demand and available rail capacity are already difficult to coordinate.

The Contrecœur Expansion Makes Stability More Valuable

Montreal is also preparing for a significant expansion. The Contrecœur container terminal project, approximately 40 kilometres downstream from the city, is designed to add 1.15 million TEUs of annual handling capacity. That represents an expansion of roughly 60% compared with the port’s existing capacity. Prime Minister Mark Carney marked a major construction milestone in April 2026, while in-water work advanced later in the year. The project targets full operations in 2030.

The undertaking has substantial public and private backing, including approximately C$1.16 billion in financing through the Canada Infrastructure Bank and additional support from federal and Quebec authorities. It is expected to include new berths, container-handling facilities, rail infrastructure and road connections. Environmental requirements and construction execution remain important considerations. The dockworkers’ new agreement does not automatically establish every future employment arrangement at the expanded terminal. Still, a history of stable operations will be important as investors, terminal partners and shipping lines evaluate Montreal’s ability to handle greater cargo volumes.

The Agreement Brings Stability, but Not an End to Every Challenge

The October 16 announcement provides an important measure of certainty through December 2028, but significant questions remain. The Maritime Employers Association described the arbitration decision as covering wages, conditions and other contractual provisions without releasing the full details in its announcement. As of the latest reporting accompanying the release, CUPE Local 375 had not issued a public assessment of the agreement. Its eventual response will be important in understanding how workers view the outcome after years of disputes.

Montreal also faces challenges beyond labour relations, including fluctuating water levels on the St. Lawrence, changing international trade patterns and infrastructure demands. The port authority has been emphasizing export diversification, with 2025 figures showing increased trade with African and Mediterranean markets. Reliable cargo handling can support those ambitions, but it cannot guarantee new customers or eliminate global shipping risks. The real test will be whether the new contract helps workers and employers maintain dependable operations, rebuild trust and approach the next round of bargaining before uncertainty again reaches the waterfront.

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