Corporation remains committed to reaching negotiated agreements, but sides remain far apart
OTTAWA – Canada Post has informed the Canadian Union of Postal Workers (CUPW) that, in light of the significant transformational changes announced by the Government of Canada, it is reassessing its new Global Offers.
In his announcement on September 25, the Honourable Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, said Canada Post must take decisive action to deliver the services Canadians need in a way that is financially sustainable.
We remain committed to reaching negotiated agreements with CUPW that are affordable, support our people and help build a sustainable future for the company. We have confirmed with CUPW that we are working diligently and will present these new offers as soon as possible.
CUPW’s proposals would add billions in additional costs
We are disappointed that, in response to the government’s reforms, the union chose to launch a national strike. This will further deteriorate Canada Post’s financial situation.
Facing a growing financial crisis – more than $5 billion in losses from operations since 2018 – the company cannot agree to CUPW’s counteroffers of August 20, which maintained or hardened the union’s position on many items. For example, CUPW’s offers would:
- Add significant new costs – more than $700 million a year ($2.8 billion over the four years of the agreement) in new operating costs. This includes unchanged wage demands, new benefit improvements, new vehicles, and other items.
- Add increased paid time off work – 17 personal days (up four days), which would be in addition to current vacation leave (up to seven weeks) and statutory holidays. These additional personal days are included in the $2.8 billion in additional costs.
- Add additional full-time employees – eliminating or severely restricting the use of contracted services and instead hiring them as CUPW-represented employees. Also, any new services would have to be staffed by CUPW-represented employees.
- Severely restrict the ability to adapt operations to current needs – any organizational change would be considered a “technological change” and be subject to the strict rules and restrictions against technological changes in the collective agreements.
- Protect pay for time not worked (trapped time) – with no mention of dynamic routing or load-levelling, letter carriers would continue to be paid for eight hours of work, even if volumes mean they finish early. The Industrial Inquiry Commission final report said: “There is no persuasive case to be made that any business – especially an effectively insolvent business – should be put in a situation where it must pay people for 8 hours a day and not be able to reassign them to other work should they finish early (or where it is anticipated they will do so).” p.75
Reforms will help chart a path forward for Canada’s postal service
We support the reforms announced by the government, which will allow our country’s national postal service to chart a strong, financially sustainable path forward that better meets the evolving needs of Canadians.
Canadians deserve a postal service that is reliable, affordable and sustainable. As we begin the process of modernizing the country’s postal service, we will make every effort to minimize the impact on Canadians and continuously look for ways to enhance service. We will also proceed thoughtfully and treat our employees with fairness and respect.
For more information:
Media Relations
613-734-8888
media@canadapost.ca
