Canada Post’s Unusual Layoffs Amidst a Labour Dispute

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Commonwealth_ The ongoing strike involving over 55,000 Canada Post workers has entered its second week, with the Crown corporation initiating temporary layoffs of striking employees. The Canadian Union of Postal Workers (CUPW) criticized the move as a “scare tactic” in a notice to its members, stating that it is investigating the matter. Canada Post spokesperson Lisa Liu confirmed the layoffs, describing them as temporary adjustments in response to operational disruptions caused by the labor action. She clarified that the corporation has notified certain employees of the termination of their collective agreements and the modification of their employment conditions in accordance with the Canada Labour Code, particularly the lockout notice section. “Our business has been significantly impacted leading up to and throughout this labour disruption. We have taken steps to adjust our operations,” Liu said.

Labour Action and Legal Concerns

Earlier in November, Canada Post issued a lockout notice, clarifying that it did not intend to lock out employees. The corporation described the notice as a precautionary measure, enabling it to implement operational changes in response to the strike’s effects. Labour and employment experts have described the layoffs as unusual, given that striking workers are already unpaid. Deborah Hudson, a labor and employment lawyer, pointed out that the Canadian Labor Code prohibits layoffs solely based on participation in a strike.

David J. Doorey, a professor of labor and employment law at York University, echoed similar concerns, suggesting that Canada Post may need strong evidence to prove the layoffs were unrelated to the strike.  “If CUPW challenges the layoffs, Canada Post will need compelling arguments to persuade the labour board,” he said.

Anticipating Post-Strike Challenges

Hudson speculated that Canada Post might be anticipating a decline in workload following the strike’s resolution, as competing carriers have stepped in to manage Black Friday deliveries.

“It may be that a lack of work at that point results in some employees being laid off, at least temporarily,” Doorey said, emphasizing that such scenarios remain hypothetical. Legally, striking workers have the right to resume their positions once the strike ends, unless they are no longer available. However, the layoffs suggest Canada Post is bracing for potential challenges, including lower parcel volumes and operational adjustments.

Operational Struggles and Negotiation Deadlock

Canada Post has reported significant disruptions during the strike, resulting in millions of undelivered parcels. A central issue in the negotiations is the union’s push to expand parcel deliveries into weekends, a strategy Canada Post views as essential for competing with other delivery providers. However, the two sides remain divided on how to implement this plan. Canada Post, which posted a $315-million pre-tax loss in its third quarter, sees weekend deliveries as a potential revenue booster. Yet, this proposal is part of broader negotiations that have so far failed to bridge differences between the parties.

Federal Labour Minister Seamus O’Regan indicated that mediation efforts have stalled, with the sides too far apart on critical issues. The government temporarily suspended mediation talks and ruled out intervening through binding arbitration.

Next Steps

Canada Post spokesperson Phil Rogers said the corporation is considering options to accelerate negotiations and remains committed to reaching a resolution. However, with mediation suspended and no clear path forward, the strike shows no immediate signs of resolution. As the labor dispute drags on, its impact on Canada Post’s operations and its workforce continues to deepen.  Both sides appear entrenched, leaving the future of negotiations uncertain.

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