Employers at ports in western Canada said Monday they would lock out foremen across British Columbia in response to strike action, threatening Can$800 million ($575 million) in daily trade.
The BC Maritime Employers Association (BCMEA) said in a statement it had decided to impose the lockout from 4:30 pm Pacific Time (0030 GMT Tuesday) "to facilitate a safe and orderly wind-down of operations," after the port workers union began limited strike action earlier Monday.
The union, the International Longshore and Warehouse Union (ILWU) Local 514, told Canadian media that the lockout was an overreaction to a limited strike.
BCMEA said the lockout was necessary as the strikes "can easily escalate, including a complete withdrawal of labor without notice."
The two sides have been at odds over compensation and policies surrounding automation at the port, among other issues.
The BCMEA said the lockout would impact all of Canada's west coast ports, with knock-on consequences for international shipping.
Grain exports and cruise ship operations would not be affected, BCMEA said.
The Greater Vancouver Board of Trade estimated last week that labor disputes at Canada's west coast ports put "at risk $800 million a day in trade."
"Supply chain instability in recent years has been a major hurdle for Canadian businesses, which was only just beginning to improve prior to the start of this labor disruption," it said.
"The ongoing disruptions not only jeopardize Canada's international reputation as a reliable trade partner but also threaten long-lasting damage for years to come."
It has called on the federal government to intervene in the dispute.