Strikebound Seaway

As strikes go, it was a midget involving a mere 1,250 workers. In terms of damage, it could turn out to be mammoth. With the St. Lawrence Seaway closed by a labor dispute for the first time in its nine-year life, growing economic dislocations last week rippled across eight U.S. states and much of Canada.

On the Great Lakes, 71 ocean-going ships were stranded behind strikebound locks, able to load or unload cargoes as far inland as Chicago but unable to return to sea. Another 72 vessels were stalled at the Montreal end of the 2,342-mile waterway, and dozens more clogged smaller ports as far away as Trois Riveres, 80 miles downstream. Canadian railroads stopped wheat shipments to such key outlets as Port Arthur and Fort William on Lake Superior. Toronto shippers laid off 500 longshoremen. Executive Director Andrew W. Fleming of the Detroit-Wayne County Port Commission estimated that the tie-up was costing Michigan business $500,000 a day in lost revenues. "We expect some such stupidity as this about ten days a year," said President John D. Leitch of Toronto's Upper Lakes Shipping Ltd., "and we try to allow for it in our pricing system."

Persistent Deadlock. The striking members of the Canadian Brotherhood of Railway, Transport and General Workers left their jobs June 21, demanding an 18% pay increase spread over two years. Backed by a federal conciliation board, Canada's St. Lawrence Seaway Authority offered a 12% raise, to an average $3.48 (Canadian) an hour. At the first negotiations since the walk-out began, the union cut its demand to 15%, but the deadlock persisted. Ottawa fears that a big settlement could set off inflationary wage increases, as happened after the seaway workers won a two-year, 30% pay boost in 1966.

If the strike continues for as long as a month, its impact is expected to grow severe, especially north of the border. The seaway is the vital artery for Canadian grain exports, for shipment of Nova Scotia coal to Ontario electric plants, for the flow of iron ore to U.S. mills from Labrador and Quebec. Employers and union officials predict that a prolonged tie-up would idle at least 5,000 seamen, plus another 10,000 dockworkers at Great Lakes ports.

Cutting the Heart. Port authorities are even more concerned that the dispute will cause a permanent loss of seaway traffic. "The strike has cut the heart out of the seaway season," says Captain John J. Manley, Chicago port director, who estimates that 750,000 tons of cargo will be diverted to East Coast ports by this week. Such losses could saddle U.S. and Canadian taxpayers with extra burdens. Seaway traffic has lagged so far behind expectations that the $460 million U.S.-Canadian project is still losing money. The seaway has failed to generate enough revenue to retire its bonds on schedule and has even fallen behind on interest payments due the two governments. And every week that the strike continues, the two countries lose $700,000 in lock fees and toll revenues.

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