Canada Post mail carriers will stop delivering direct mail flyers on Monday, escalating a work stoppage that is currently limited to overtime hours.
The Canadian Union of Postal Workers announced the partial strike action on Friday in an effort to pressure the company to make concessions in stalemated labor talks that have lasted 18 months. It said it will replace the ban on overtime work with a refusal to carry marketing mail.
Federally mediated bargaining talks resumed in late August for the first time in three months after CUPW members overwhelmingly voted against Canada Post’s “final” offer in an election imposed by the government to test whether the union leadership’s hardline position was shared by workers.
“Canada Post has had our global offers since August 20, and instead of responding, they issued an ultimatum: change our offers or they would walk away, with no commitment to return,” said Jan Simpson, CUPW National President, in a statement. “We’ve been left with no choice but to change our strike activity with the hope that Canada Post finally takes us seriously and returns to the bargaining table.”
Canada Post lost US$294 million before taxes in the second quarter, the largest loss for any three-month period in the organization’s history, as parcel volumes tumbled amid uncertainty over service.
“We are disappointed in CUPW’s decision to ban the delivery of [direct marketing] mail, which we only learned about through their news conference. This decision will impact the thousands of Canadian businesses that reach their customers with information and offers through the mail. It will also impact CUPW-represented employees who are paid to deliver flyers on top of their wages,” Canada Post said in a statement.
Canada Post has absorbed US$3.6 billion in losses since 2018, with taxpayers paying to keep the mail system afloat.
The sides remain far apart, with Canada Post accusing CUPW of recently taking more extreme positions, which would add further operational costs. The postal operator says it needs to adopt part-time flex staffing, weekend delivery, leveling loads between mail carriers to even work for each neighborhood and establishing dynamic, rather than fixed, routes, to compete with private parcel carriers with weekend service and improve efficiency.
“We encourage CUPW to come back with workable solutions that reflect our current reality and get the parties closer to a resolution. We’re disappointed that the union chose not to do so, and instead chose strike activity that will have further negative impacts on the company,” Canada Post said.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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