Canada Post Crisis: Why Workers Rejected a Deal and Are Demanding More

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Commonwealth_ Canadian Union of Postal Workers (CUPW) has presented new proposals to Canada Post, including better wages and adjustments in working conditions, as the two parties initiated a round of continuous collective bargaining negotiations. The new proposal comes after union members turned down a recent offer of a contract by the Crown corporation, extending negotiations that have been underway for more than 18 months.

 

Information regarding the New Proposal

In the new proposal, CUPW is seeking nine per cent yearly increases in the first year of a new deal, four per cent in the second year, and three per cent in each of the last two years. This increase would be significantly higher than the approximately 13 percent offered by Canada Post recently. Members of the union have only recently turned down that proposal in a postal ballot, which was itself an echo of the general outrage among postal workers at the conditions on offer. The union also advances new demands for pay in the context of increased cost-of-living allowances. In the event of inflation exceeding 10.33 per cent in any one quarter, the union demanded extra payments. That is above Canada Post’s initial proposal, with increases tied to inflation boosts over more than seven per cent.

 

Weekend and Part-Time Proposals

Saturday delivery and inclusion of part-time employees in the post office are among the more important new additions to the updated union proposal. The union had offered to save on weekend activity, especially parcel delivery, mail pick-up, and sorting, which also mirrors the growing significance of e-commerce for Canada Post operations.

The part-time employees should not exceed 20 hours per week. Furthermore, none of the levels of part-time employees working during weekends should exceed that of the full-time employees who were working simultaneously. Imposing such limits, the union is attempting to give some flexibility to Canada Post while ensuring that the increase in part-time positions would not undermine the job security of the full-time employees.

The issue of covering weekends and part-timers has also been a source of contention in the negotiations. While the union is ready to make concessions, it has also taken measures to protect its members.

Canada Post’s Position and Financial Matters

Canada Post received the new proposals and stated that it is giving consideration to the union’s offers. Despite the lack of a solution, the company reiterated its willingness to negotiate new collective agreements.

Canada Post finances spur the negotiations. The spring report by Commissioner William Kaplan pinned the blame on the fact that the postal system is broken and pledged that there are going to have to be some radical reforms to make it function in the long run. Canada Post has already stated that ongoing uncertainty about labour disputes is costing the company tens of millions of dollars in lost daily revenues, pushing its finances into the red. Continuing Negotiations

The two parties returned to the negotiating table after hearing the new offers, with the two subsequent meetings scheduled for Friday and Monday. Although the union has made some concessions by including weekend delivery in its proposal, a significant gap remains between the two parties concerning pay rises, inflation protection, and part-time contracts.

The ongoing fight today reflects broader concerns for the post office. Although legacy mail revenues have dropped and expenses have increased in the context of parcel deliveries, Canada Post must innovate without sacrificing fair labour practices. For postal workers, the fight is to ensure that their pay keeps pace with inflation and to maintain full-time employment opportunities.

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