Economy

Canada Post and Union Remain at Odds as Strike Approaches One Month

Published December 11, 2024

Canada Post has stated that the recent proposals from the union representing its striking workers are "unaffordable and unsustainable" as a nationwide postal disruption approaches the one-month mark.

In a statement made on Wednesday, Canada Post explained that a thorough review of the latest offers from the Canadian Union of Postal Workers (CUPW) revealed that meeting the union’s demands would cost the company over $3 billion over a span of four years.

The Crown corporation further mentioned that CUPW’s latest offer is "far from where we need to be" and is contributing to a widening gap in the ongoing negotiations.

On the previous day, the union countered Canada Post’s claims, asserting that its latest offer did not take significant steps backward in the labor dispute.

“In our most recent proposals to Canada Post, the union has addressed many issues that the employer initially brought to the bargaining table,” CUPW stated in a published response.

“Far from trying to ‘widen the gap in negotiations,’ our intention is to facilitate an agreement and reach mutually beneficial solutions. CUPW is committed to securing solid collective agreements that protect our members' rights.”

The strike, which commenced on November 15, has extended to Day 27, showing no immediate signs of resolution.

Impact of the Strike

The ongoing postal shutdown is costing small businesses millions of dollars every day, according to the Canadian Federation of Independent Business. This situation is negatively affecting Canadians nationwide.

On Monday, Canada Post indicated that a quick resolution to the strike seems unlikely.

“We don’t want to give false hope to affected employees, small businesses, charities, and northern communities who wish for a swift resolution,” the company remarked.

“Over the past few weeks, Canada Post has taken several key steps to bridge the gap and work toward negotiated agreements. However, the union appears to have reverted to previous positions while increasing their demands.”

Main Points of Disagreement

At the center of this labor dispute are demands for higher wages, improved medical benefits, and issues related to the use of temporary workers within the postal service.

CUPW has claimed that in their latest offers, they have proposed solutions to various issues, including overtime, relief staffing, peak period demands, and the conversion of certain temporary employees into permanent positions.

Canada Post reported that the union has put forward a demand for wage increases totaling 19 percent over four years, including a 9 percent increase in the first year. This proposal marks a reduction from CUPW's original request for a total wage increase of 22 percent or a compounded increase of 23.7 percent.

Meanwhile, Canada Post has countered with an offer of an 11.5 percent wage increase over four years.

“While we recognize that CUPW has adjusted its wage demands, the union’s proposal is still far beyond what Canada Post can afford, especially in light of the company’s significant losses and worsening financial state,” stated Canada Post.

Canada Post has also suggested creating new staff positions to support weekend deliveries and implementing a dynamic routing model, but these suggestions have not yet been accepted by the union.

Despite the current stalemate, both parties maintain their commitment to reaching an agreement to bring an end to the ongoing strike.

Canada, Post, Union