Canada Post, CUPW negotiations lead to strike action
Strike comes at the onset of a busy holiday season for shoppers, students, small business’
Recently, The Canadian Union of Postal Workers (CUPW) announced a nationwide strike beginning Nov 15 at midnight. Prior to the onset of the strike, negotiations between CUPW and Canada Post have been ongoing for more than a year.
Global News’ report on the strike stated that over 55,000 Canada Post employees went on strike. The strike has resulted in disruptions in mail and parcel services across the country. Canada Post’s website announced the strike and informed the customers to expect delays in services.
“Mail and parcels will not be processed or delivered for the duration of the national strike, and some post offices will be closed. Service guarantees will be impacted for items already in the postal network. No new items will be accepted until the national disruption is over […] Shutting down facilities across the country will affect Canada Post’s entire national network,” explained an announcement by Canada Post.
CUPW has been in negotiations with Canada Post to renew the collective bargaining agreement between the two parties since November 2023. According to Canada Post’s website, its two collective agreements with CUPW for the Rural and Suburban Mail Carriers Urban Postal Operations expired on December 31, 2023, and January 31, 2024.
At the time of the beginning of the negotiations, Canada Post had assured its customers that “no labour related service disruptions” would occur during the peak season last year. In October, a Canada Post statement read: “Canada Post and CUPW must approach the negotiations with greater urgency to avoid a labour disruption,” but, unlike last year, did not promise that no labour related service disruptions would occur.
The Canada Labour Code says that in order to renew collective agreements, if both parties reach an impasse, either party can inform the Minister of Labour with a notice of dispute which is followed by a conciliation period which usually lasts for 60 days or longer. A neutral third party is appointed to mediate the agreement during the conciliation period. If the parties still cannot come to an agreement, a 21-day cooling off period follows. The parties reach a position to strike or lockout after the cooling off period.
On Aug 2, 2024, updates from Canada post revealed that after approximately seven months of discussions the parties had not been able to reach an agreement and had reached an impasse. CUPW filed a notice of dispute with the Federal Minister of Labour and sought conciliators to help the parties with negotiations. Two conciliators were appointed to help with negotiations and the conciliation period began on August 13.
On September 25th, CUPW was presented global offers by Canada Post for both the Urban and Rural and Suburban Mail Carriers bargaining units.
“Canada Post has heard CUPW’s concerns and worked to find solutions. We have presented fair and reasonable offers,” claimed Canada Post in the September 25th update. The CUPW explained, in a statement on their website, that Canada Post’s desire to put future employees on a “defined contribution pension plan” is “a direct attack on all members’ retirement security,” and that “Canada Post wants to completely overhaul letter carrier work. CPC wants to be able to schedule carriers 5 days on a 7-day calendar, schedule variable work hours each day, change routes every day, add part-time flex positions [and] cut full-time relief positions”
Counter offers were made by CUPW but the parties failed to reach an agreement by the end of the conciliation period on October 12. Negotiations failed to conclude even by the end of the cooling off period on November 2nd. Eventually, CUPW announced a nationwide strike starting on the midnight of November 15.
Canada Post’s financial struggles play a major role in the current state of events. An article by the National Postreported that the organization lost $3 billion between 2018 and 2023 on top of an outstanding loan of $1 billion. The article further reported that the organization might have to take on more debt in order to maintain operations in the absence of serious reforms.
The National Post also reported that the union demanded a 24 per cent pay increase over four years, along with other benefits which included higher short-term disability payments, more paid sick days, and paid meals and breaks. A CUPW statement made on November 21 explained that “as always, the union’s priority is to ensure stability for…full-time weekday routes.” “We need to make sure that all jobs at the public post office are good jobs. We won’t let Canada Post pit current workers against future workers,” CUPW stated.
The Financial Post reported that the CUPW accused Canada Post of not negotiating in good faith. “Canada Post left us no choice when it threatened to change our working conditions and leave our members exposed to layoffs,” said a union representative to The Financial Post.
The strike has caused a nationwide disruption of many services and tension mounts for customers as well as business owners as the holiday season nears. Small businesses over Canada are likely to be affected the most by the strike as 80 percent of small businesses depend on postal services for some part of their operations, according to the Canadian Federation of Independent Business (CFIB).
980 CJME reported on November 21, that small businesses in Regina who rely on holiday shopping for a big part of their earnings must now look for an alternative delivery method. According to 980 CJME, up to 40,000 Christmas ornaments are made yearly by small businesses.
Due to the strike a large number of packages have been affected and business owners are struggling to find other delivery options as economical as Canada Post.
Global News reported that the delivery of tens of thousands of passports has been stuck due to the strike. According to Employment and Social Development Canada’s (ESDC) statement to Global News, around 85,000 passports are printed and ready to be mailed nationwide but are stuck due to the strike.
As holidays near and people prepare to send presents and mails to their loved ones across the country, the strike is bound to affect more people. As end of term approaches, the strike might also impact students as well– the Archer Library’s interlibrary loan service often relies on Canada Post– meaning disruptions to research are also likely to occur.
