Government urges Canada Post and union to reach a deal as disruptions loom
Postal workers in Canada could initiate a strike as early as Friday, with contract negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW) remaining unresolved, according to BNN Bloomberg.
The timing of this possible disruption, just before the holiday season, could impact services nationwide.
Canada Post issued a lockout notice on Tuesday after CUPW handed them a 72-hour strike notice. Should negotiations fail, CUPW members would be in a legal strike position by Friday morning.
However, the union has yet to confirm any job action, indicating that a decision will depend on the progress made in upcoming bargaining sessions.
After nearly a year of talks, significant gaps remain, CUPW stated, emphasizing that despite efforts, both parties remain “far apart on many issues.”
Labour Minister Steven MacKinnon expressed the federal government’s desire for a negotiated settlement before the deadline.
“We are hoping to achieve a deal at the table,” MacKinnon said in a Tuesday news conference, noting that the government would “make every effort possible” to facilitate discussions.
His remarks coincided with a government directive for the Canada Industrial Relations Board to intervene in a separate dispute affecting ports in Vancouver and Montreal, which have seen cargo delays due to ongoing labour conflicts.
Concerns about potential government intervention in the postal workers' negotiations were raised by NDP labour critic Matthew Green, who referred to such an approach as a “weasel way out.”
He noted that CUPW has been attempting to negotiate wages for a year, asserting it is within their rights to pursue these efforts. Green also emphasized that the NDP would not support any back-to-work legislation, even if doing so risked triggering an election.
In the past, back-to-work legislation resolved a rotating postal strike during the 2018 holiday season.
However, legislative intervention appears unlikely in this instance due to a minority government facing gridlock amid procedural disputes between the Liberals and Conservatives, which have slowed the government’s legislative agenda.
University of British Columbia professor Mark Thompson suggested that intervention from the government remains uncertain. He indicated that both Canada Post and CUPW are “firing off warning shots,” with neither side showing signs of abandoning negotiations entirely.
The union’s strike notice applies to both its urban and rural-suburban bargaining units. Meanwhile, Canada Post spokesperson John Hamilton clarified that while a lockout notice was issued, the Crown corporation does not intend to lock out employees.
Instead, the notice indicates that the two existing collective agreements could end on Friday, allowing operational adjustments in response to any strike-related impacts.
Canada Post recently proposed a four-year contract with 11.5 percent in annual wage increases, continued defined-benefit pensions for current employees, and assurances around job security and health benefits.
CUPW rejected this offer, and last month, union members voted overwhelmingly in favour of strike action if an agreement could not be reached.
Canada Post has stated that in the event of rotating strikes, they plan to continue deliveries while negotiating, although the ongoing uncertainty has impacted its mail volumes, especially during the peak season.
Mark Thompson noted that the union’s bargaining leverage is heightened during the holiday season, adding that from the workers’ perspective, Canada Post’s offer may appear insufficient.
The Canadian Chamber of Commerce also expressed concerns, with senior director Pascal Chan noting that a work stoppage would have a “considerable impact on millions of Canadians and businesses” and further disrupt supply chains already strained by port shutdowns.
Canada Post and CUPW have agreed to continue delivering socio-economic cheques during a potential strike, ensuring access to government financial assistance for Canadians. The federal government has advised those affected to consider direct deposit to mitigate disruptions.
Canada Post, grappling with evolving demands in the parcel-delivery market and challenges arising from the COVID-19 pandemic, disclosed at its August annual meeting that its financial outlook is unsustainable and requires significant adjustments to maintain its delivery network.
