ILWU & BCMEA Negotiations and Potential Disruption to Canadian W. Coast Terminals

Schenker Announcement

News Item Entered: Friday, October 12, 2007

Please find the news update from Port of Vancouver Authority regarding the latest status of ILWU/BMEA negotiations.

This issue affects all Canadian West Coast ports including Prince Rupert. Based on this news excerpt, we assume that as soon as the conciliator has met with both sides and present a report to the Minister, the 21-day rule applies.

Therefore, it is quite possible that we could see action and slow downs as we go into the Christmas season and through the holiday season period, rather than just after as was anticipated before.

As a result of this and the possibility of slow downs at the terminals, we are prepared to work with you on your RUSH containers to ensure that your priority containers are least affected. We can offer CY storage, de-stuff and trans-loading services.

Should you have any questions regarding any of these services or need more details on how Schenker can assist you in this matter, please do not hesitate to contact your account manager/sales representative.

With best regards,
Schenker of Canada Ltd.



ILWU/Employer Talks Breakdown in Port of Vancouver
--posted October 12, 2007


Please be advised of the status regarding BCMEA/ILWU negotiations.

We have been advised that the process has commenced with the ILWU advising the Minister of Labour that ILWU have met an impasse with the BCMEA.

The Minister of Labour must appoint a conciliator within the next 15-days.

The Conciliator will have 60-days to meet with both sides and present a report to the Minister.

Upon receipt of the report by the Minister, neither side may take any action (albeit lockout or strike) for 21-days.

Minister can recommend a resolution to both sides, but at this time it is not mandatory that either side accept the Minister's recommendation.

After the 21-day period, either side may issue 72-hour strike or lock out notice.

Based on the above scenario and the maximum number of days is allotted for each process, should there be any work stoppage it would not occur prior to January 7, 2008.