Canada Post has announced that discussions are ongoing with the Canadian Union of Postal Workers (CUPW), and neither party has issued a notice for a work stoppage. In a statement released on Sunday, Canada Post confirmed that both sides agreed not to provide the required 72-hour notice of a strike or lockout as long as the negotiations remain productive. Operations at Canada Post continue as normal during this period.
Union’s Legal Strike Position
As of Sunday, the CUPW could have entered a legal strike position following the conclusion of a cooling-off period. However, the union has yet to issue a formal strike notice. They have indicated that such a notice could still be issued “at any time” should the negotiations break down.
Canada Post’s Latest Contract Offer
Last week, Canada Post presented a new contract proposal that includes annual wage increases totaling 11.5% over four years. This offer aims to protect employees’ defined benefit pensions, job security, and health benefits. Canada Post asserts that this proposal will help ensure employees do not lose ground amid ongoing economic challenges.
Union’s Response to Contract Offer
Despite the new proposal, the union has expressed dissatisfaction, stating that Canada Post’s offer is “far from what we are demanding and deserve.” Recent union votes showed overwhelming support for a strike, with 95.8% of urban workers and 95.5% of rural workers backing the strike mandate if a satisfactory agreement is not reached.
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Canada Post’s Financial Concerns
Canada Post is facing significant financial difficulties, having reported a loss of $490 million in the first half of 2024 and a total loss of $3 billion since 2018. The corporation claims it is “rapidly falling behind” in the competitive parcel delivery market and is seeking to negotiate a more flexible and affordable delivery model, potentially including seven-day parcel delivery.
Federal Labour Minister Steven MacKinnon met with both Canada Post and the union last Thursday, urging them to work toward a negotiated settlement. As the situation evolves, the focus remains on productive talks to avoid disruption in postal services.