By David Ljunggren

OTTAWA (Reuters) – Canada on Tuesday moved to end labor disputes at the country’s biggest ports, including Vancouver and Montreal, citing economic damage and the potential for driving away trading partners.

It was the second time in a few months that the Liberal government has stepped in to halt a dispute. In August it ordered an end to work stoppages at the country’s two largest railway companies.

Labour Minister Steven MacKinnon said he had directed the country’s industrial relations board to order an end to the strike and impose binding arbitration.

“As the economic losses threaten the country and begin to mount, it is up to the government to ensure that … we can get on with the economic life of this country and avoid layoffs and other carnage,” he told a press conference.

“Canadians have a limited tolerance right now for economic self-harm.”

The dispute – which MacKinnon said was affecting more than C$1.3 billion ($932 million) in value of goods every day – had already hit shipments of canola oil, forest products and other goods. Business groups welcomed the announcement.

International Longshore and Warehouse Union Local 514, which represents supervisory longshore workers at the heart of the British Columbia dispute, said it will file a legal challenge to the minister’s orders.

“We will fight this order in the courts,” said Frank Morena, ILWU Local 514 president, in a statement.

“And we will not forget how these employers and this federal Liberal government have attacked not only the ILWU but all of labor.”

The Canada Industrial Relations Board, which is independent but takes direction from Ottawa, would take a few days to issue the relevant orders, MacKinnon said.

The left-leaning government has previously stated its preference for resolving labor disputes through collective bargaining. MacKinnon said he had been forced to intervene after federal mediators reported the talks at Montreal and Vancouver were at an impasse.

The left-of-center opposition New Democrats, a pro-union party that is propping up the minority Liberal government, accused Ottawa of caving in to employers.

“Back-to-work orders suppress wages for all Canadians, so billionaires get richer and the rest of Canadians fall further behind,” leader Jagmeet Singh said in a statement but made no mention of bringing down the Liberals.

The Teamsters union that represents employees at the two main rail companies has filed court challenges against rulings by the labor board that forced them back to work.

“The government is sending a dangerous message: employers can bypass meaningful negotiations, lock out their workers, and wait for political intervention to secure a more favorable deal,” the Canadian Labour Congress said in a statement.

The Montreal Longshoremen’s Union rejected a final offer made for a new labor contract, leading to a lockout being declared. Exports of canola oil and forest products from West Coast ports, including Vancouver, have halted.

“These work stoppages are impacting our supply chain, hundreds of thousands of Canadian jobs, our economy and our reputation as a reliable international trading partner,” said MacKinnon, who said employers and unions had not been acting urgently enough.

“I’ve directed the Canada Industrial Relations Board to order that all operations and duties at the ports resume and to assist the parties in settling their collective agreements by imposing final and binding arbitration,” he said.

($1 = 1.3943 Canadian dollars)

(Additional reporting by Ed White in Winnipeg; Editing by Alexander Smith, Jonathan Oatis, David Gregorio and Sonali Paul)

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