CCTV Script 23/10/23

— This is the script of CNBC's news report for China's CCTV on October 23, 2023.

​​Canada's largest private sector union, Unifor, stated that starting midnight local time on October 22, 361 workers they represent on the Canadian St. Lawrence Seaway began their strike. The St. Lawrence Seaway, an indispensable waterway for both Canada and the US, connects the Great Lakes to the Atlantic Ocean, encompassing a complex system of locks, canals, and channels. The strike-induced shutdown is set to affect goods transportation between the US and Canada.

The union pointed out that wage issues are the crux that led negotiations to a deadlock, with the union side hoping that workers' wages could keep pace with inflation. On the other hand, the St. Lawrence Seaway Management Corporation, representing the management side, mentioned that inspired by the automotive industry negotiations, the union is demanding a wage increase, which if approved, might lead to higher seaway tolls. While they hope for sincere negotiations with the union, progress has been slow.

The operation of the locks is severely impacted by the workers' strike. The function of the locks is to ensure ships can move safely and accurately between different water levels, which is vital for the seaway's operation. The St. Lawrence Seaway Management Corporation said the seaway would remain closed until an agreement is reached with the union.

Maritime goods transportation is a vital component of North America's economy and supply chains. According to a report by the Canadian Press, last year, goods valued at approximately Cdn$16.7 billion passed through the seaway, nearly half of which were grains and iron ore.

Analysts point out that amidst the Russia-Ukraine conflict and frequent extreme weather events, the risk to food supply already exists, and the strike action will further hit the transportation link of food. A strike not only interrupts the flow of goods but could also trigger a ripple effect across various industries dependent on seaway transportation, including agriculture.

The Montreal Port Authority also issued a statement on Sunday, mentioning that the Great Lakes and St. Lawrence Seaway system serves 75% of Canada's manufacturing capacity and nearly two-thirds of the Canadian population.

The business community in Canada is now voicing concerns. The Canadian Federation of Independent Business expressed significant concerns about the strike event, particularly highlighting that Canadian small and medium enterprises would be impacted.

Earlier this summer, a long-term strike at ports in British Columbia, Canada, had already severely impacted Canadian SMEs due to supply chain disruptions. The Canadian Federation of Independent Business stated that now SMEs are facing numerous challenges like inflation, labor shortages, debt burdens, and weak demand, and the latest seaway workers' strike might further lead to sales and inventory losses for businesses.

The Canadian Chamber of Commerce also indicated that the St. Lawrence Seaway provides over 66,000 jobs for Canada, generating economic benefits of 34 million Canadian dollars daily. Any strike action would harm the Canadian economy, exacerbating Canada's inflation.

The Canadian Chamber of Commerce is now urging the Canadian government for immediate intervention. Meanwhile, the Canadian Federation of Independent Business hopes the government ensures the seaway remains fully operational during negotiations and calls for federal regulation of workers as essential workers to prevent similar situations in the future. We will keep a close eye on the progress of strike negotiations.