Vancouver’s construction sector is bracing for a “likely” concrete strike

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Two years after a strike disrupted Metro Vancouver’s concrete industry, causing major construction delays, local builders now fear a possible repeat.

In 2022, a five-week work stoppage was blamed for using up as much as a third of the region’s concrete supplies, causing cost escalations and delays for all kinds of projects, including housing and the $2.8 billion Broadway subway line.

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Now, after the recent strike vote, some industry leaders want the provincial government to take a more active role to prevent another long-term disruption at the same concrete plants.

On Monday, an X account claiming to be members of the local Teamsters union representing subway workers for Heidelberg Materials, a German multinational company whose subsidiaries provide much of Vancouver’s concrete supply, said another strike was “probably” The day before, union members voted 98.6% to allow their bargaining team to call a strike 72 hours in advance if they so choose.

Negotiations were to continue on Wednesday, but Teamster members he wrote further On Monday, they had “little hope that the company would make a fair offer.”

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This week’s strike vote comes almost exactly two years after workers struck in May 2022 at six Vancouver-area concrete plants owned by Heidelberg Materials, and shortly thereafter another six Heidelberg-owned plants halted work in solidarity. The break from work lasted five weeks.

“The impact on the industry has been enormous” in 2022, said Jeannine Martin, president of the Vancouver Regional Construction Association, which represents about 850 members, most of whom are general contractors and trade contractors, in commercial and industrial construction.

“It had an impact on all sides,” Martin said. “And if they are public projects like the Broadway subway and Pattullo (bridge replacement), that impact will fall on the taxpayer.”

Last week, British Columbia’s Ministry of Transportation cited the 2022 strike as one of the factors in delaying the completion of subway construction to 2027, saying labor disruptions delayed construction of a launch pad for tunnel boring machines.

With labor disruptions at 12 plants in 2022 taking about 35 percent of local concrete production, the five-week labor action had “domino effects” that were felt for months after the strike, said Chris Gardner, president of the Independent Contractors and Business Association.

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Gardner said he believes the potential disruption is serious enough that the province should take a more active role in bringing the parties together to facilitate an agreement.

“There is no doubt that people are concerned that there will be a repeat of 2022, and we cannot afford that,” Gardner said. “There is significant upward pressure on construction material prices, we have an affordability crisis, every major infrastructure project is over budget and behind schedule. The government needs to show some leadership here, it cannot simply let the chips fall where they may.

British Columbia Minister of Labor Harry Bains said his office will becontinues to monitor the situation closely,” but will also “respect the integrity of the collective bargaining process, which means allowing both parties to negotiate freely on their own.”

“The best results are achieved when employers and unions come to the bargaining table and work together towards a collective agreement,” Bains said in an emailed statement. “Mediation services may be offered by the Labor Relations Board if the parties require further assistance.”

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In response to a request for comment Tuesday, a spokesman for Heidelberg Materials’ North American headquarters in Texas emailed a statement saying the company “is negotiating with the union today and tomorrow with the goal of reaching a fair and mutually satisfactory offer.”

“As negotiations continue, we have no further comment,” the statement said.

Ron Rapp, CEO of the Homebuilders Association of Vancouver, said the 2022 strike has had a significant impact on homebuilding, particularly smaller and mid-sized builders.

“There is some concern among members that this could be a similar circumstance to the last round and everyone will of course be hoping for a quick resolution,” Rapp said.

On Tuesday evening, after today’s negotiations concluded, Teamsters Local 213 business agent Barry Capozzi said, “We are trying to finalize this deal without labor unrest.”

Negotiations were to resume on Wednesday.

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