MEA experienced major financial challenges this past year. Ultimately, we are ending the year with approximately 15% lower cargo volume handled by our members in Montréal. To grasp the significance of this decline on financial health, it is important to understand the operating framework in Montréal.
According to both collective agreements between MEA and the unions in Montréal, most port employees have access to job security. This job security means that regardless of the volume of activity at the Port of Montréal, employees are guaranteed
to receive their full salary. At the financial level, when the workload shrank, operating costs climbed. This year, the cost related to salaries paid by the MEA when there was no work rose from $7.3 million in 2022 to $14.5 million, estimated at the end of 2023.
Two other factors added to the additional costs this year: new federal regulations offering ten days of sick leave to employees and a significant increase in pension and well-being contributions (in the order of $7.2 million). It should be noted that MEA alone contributes to the pension and well-being fund of its port employees.
This year, member’s assessment rate (containers) for the activities in Montréal had to be increased due to these factors as well as planned salary increases when the collective agreement was renewed. This is an increase of 67% since the beginning of the year.
As a consequence of this situation, we are losing clients to ports in eastern Canada and the US, while other partners are looking for alternative routes for moving their cargo. We do not forecast volume growth in the near future in Montréal.
MEA, and all of its employees, thanks its partners for their understanding and patience…
