Canada Post has suspended its operations across the country following 12 days of rotatingstrikes by the postal union CUPW that generated heavy costs and damaged mail delivery
nationwide.The Canadian postal operator explained that the accelerating decline in volumes and revenues,combined with the inability to deliver mail in a timely and safe basis, had “left the company withno choice but to make this decision”.
Canada Post stated several reasons behind the service suspension. Impacting the short-termrevenues of its business, it said the rotating strikes that started on 3 June had generatedestimated losses of nearly $100 million after this week’s strikes in Montreal and Toronto, a figurethat was climbing daily. “Moreover, several incidents over the past few days have raised concernsabout the ability to deliver mail while keeping employees and customers safe,” it added.
Regarding the negotiations between the two parties, no progress has been made for weeks andCanada Post and CUPW remain far apart on several fundamental issues. “If we allow the uncertaintycreated by the rotating strikes to continue, our ability to remain financially self-sufficient andnot become a burden on Canadian taxpayers will be in jeopardy,” Canada Post added.
“We believe that a lockout is the best way to bring a timely resolution to this impasse andforce the union to seriously consider proposals that address the declining mail volumes and the$3.2-billion pension deficit.”
Responding to the nationwide lockout, CUPW president Denis Lemelin asked for a meeting with therecently hired Canada Post CEO Deepak Chopra. Chopra said he was prepared to meet again withLemelin on the condition that the union makes concessions to its “costly demands” and works withCanada Post to address declining mail volumes, competitiveness, and a $3.2-billion solvency deficitin the pension plan.
Lemelin said he aims to address the following issues on behalf of the union at the meeting withChopra: “First of all, we want Mr Chopra to make a public commitment that CPC will permit ourmembers to deliver social assistance cheques. This was an initiative of the union. Secondly, wewant Mr Chopra to agree to reinstate our contract and we will return to work and keep negotiating.We have already made this offer. Thirdly, we want Mr Chopra to provide CPC’s negotiators with a newmandate. Until now their only mandate has been to say ‘No’ to our proposals such as health andsafety solutions, and make demands for major concessions on issues such as sick leave and lowerwages for new workers.”
The two executives previously met after the union issued a 72-hour notice of its intention tobegin strike activities. After that meeting, Canada Post made significant concessions in an effortto avoid a damaging work disruption, but failed to reach a settlement because its offer wasrejected by the union.
Canada Post said it had made every effort to protect the pay, pension and job security ofexisting employees.
Meanwhile, postal workers could be forced back to work after the Canada’s Labour Minister, LisaRaitt, announced the government’s intention to introduce the back-to-work legislation.
Lemelin responded: “We never got a chance in this round of bargaining. Canada Post spent monthsjust saying “no” and misleading the public about our proposals. Now, as we call for a meeting withCanada Post’s president, the Harper government is going to rescue him from any responsibility tonegotiate realistically with the workers.”
“If this bill passed, we would have the very outcome that nobody wants,” Lemelin continued. “Animposed settlement brings down terms that neither party has agreed to. We believe in free speech,free association, and free collective bargaining. This legislation hurts the values that ourcountry stands for and is an attack on workers’ rights and standard of living.”
