Tension escalates in Canada Post union negotiations

The Canadian Union of Postal Workers (CUPW) and Canada Post resumed contract talks last week, aiming to find a solution that addresses the postal service's challenges, supports its employees, and secures a financially sustainable future. However, the negotiations have been fraught with accusations and concerns.

Canada Post has not turned a profit since 2017, with seven consecutive years of losses totalling $3 billion. The industrial review commission asserts that the financial struggles are not solely due to mismanagement and incompetence. In the second quarter of this year, Canada Post posted a US$294 million pre-tax loss, the largest quarterly loss in its history, and a 36.5% drop in parcel volume year over year.

CUPW, on the other hand, is pushing for job security enhancements, better compensation, and improved terms and conditions of employment. They accuse Canada Post of not engaging seriously with their proposals and of dictating terms. CUPW has enforced a ban on overtime work, opposed binding federal arbitration, and union members rejected Canada Post's proposal in August.

Canada Post, in response, proposes increasing part-time staff and implementing dynamic routing to enhance operational efficiency and service flexibility. They argue that CUPW's counter offer does not address the structural challenges and operational fixes required to address a secular decline in letter mail and competition from private parcel carriers.

CUPW, in turn, calls on Canada Post to engage in genuine bargaining rather than issuing press releases that misrepresent the reality at the table. They accuse Canada Post of not bargaining in good faith and not providing a meaningful response to their counter proposals.

Experts suggest that Canada Post was slow to adjust over the past decade to the realities of declining letter mail and parcel competition. The impasse in the negotiations is raising concerns for businesses that depend on reliable parcel delivery during the holiday shipping peak season.

Both parties need to agree on an approach that addresses Canada Post's challenges, supports its people, and secures the company. CUPW remains committed to achieving collective agreements that strengthen the postal service and respect postal workers. Canada Post aims to create an organization that better meets the needs of Canadians and secures a financially sustainable future. The talks are the first since late May, when Canada Post made its "final" offer, which was rejected by the union members on Aug. 1.