Canada Post and the union representing 50,000 mail carriers late Friday announced they have reached a tentative agreement on a collective bargaining agreement after more than two years of often-bitter negotiations, marked by two strikes and other work slowdowns, that have partially crippled the national mail carrier.
No details on what led to the breakthrough were released. The Canadian Union of Postal Workers said it will suspend all strike activity while the parties work to reach a final settlement. The union has been striking localities on a rotating basis after ending a nearly two-week strike last month.
After negotiators complete a new contract it will go to the union members for a vote of approval.
“Should the tentative agreements not be reached because the parties disagree on how the agreement in principle is reflected in language provisions, the suspension will be lifted for both parties, and the union may continue strike activity,” CUPW said in a statement.
News of the preliminary deal came on the same day Canada Post reported a record quarterly loss of $385 million during the three-months ended Sept. 30. Through the first nine months of the year it has lost $703 million, more than double last year’s loss. Losses have been mounting for years, but accelerated as online retailers and other businesses switched to other carriers out of concern that potential labor action could block deliveries, resulting in a 40% drop in parcel revenue.
The Canadian government under Prime Minister Mark Carney recently ordered Canada Post to move ahead with structural reforms aimed at improving efficiency and reducing costs, moves the union fears could cost jobs.
“This round of bargaining has been a challenging one. But members have stood together for strong public services, good jobs and a sustainable post office,” CUPW said.
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