OTTAWA – Unionized Canada Post workers will soon be given the opportunity to vote directly on the employer's proposals for a new collective agreement, starting Monday. The vote, managed by the Canada Industrial Relations Board, will take place between July 21 and August 1. A simple majority will determine whether the proposal is accepted or rejected.
Currently, Canada Post is at an impasse in negotiations with the union representing approximately 55,000 postal service workers after 19 months of discussions. Federal Jobs Minister Patty Hajdu requested the board's intervention to allow workers to vote on the latest offer from Canada Post themselves. The postal service initially sought this employee-directed vote to avoid the lengthy arbitration process proposed by Hajdu.
The latest offer from Canada Post, presented in late May, includes wage increases totaling 13.59 percent over four years, along with a $1,000 signing bonus for the workers. Additionally, the proposal encompasses significant changes, including the introduction of part-time positions which Canada Post claims are essential for maintaining operations amid increasing financial losses.
The Canadian Union of Postal Workers (CUPW) has encouraged its members to vote against the current offer, asserting that the deal fails to meet the workers' needs. Union President Jan Simpson communicated in a bulletin that should the proposal be rejected, the union is ready to resume negotiations to strive for a better agreement. Simpson also clarified that the union would refrain from implementing rolling or full strikes during the ongoing negotiations, but it would maintain a national ban on overtime work.
According to a statement from Canada Post, the ongoing uncertainty stemming from the stalled negotiations has led to a decline in public trust, causing Canadians to avoid using postal services. Consequently, this apprehension resulted in operational losses of $10 million per day in the previous month, more than double the daily losses reported in June of the previous year.
The previous year witnessed a strike and lockout extending over a month during November and December, concluded only after the then-Labour Minister, Steven MacKinnon, announced an impasse in negotiations and sought intervention from the Canada Industrial Relations Board. The board intervened, extending the existing contract's terms until May to facilitate further negotiations.
In response to ongoing disputes, MacKinnon commissioned a report to explore the structural issues affecting Canada Post that contributed to the conflict. This report, released in the spring, concluded that Canada Post was "effectively bankrupt" and required fundamental structural changes to sustain its operations.
Canada Post's recent offers aim to introduce a workforce of part-time employees to support initiatives for seven-day-a-week delivery, alongside new routing models designed for more efficient service delivery. As the situation continues to unfold, both the union and Canada Post are navigating this pivotal moment in the history of postal services in Canada.
