Union rancor rises as Canada Post balks at arbitration

Government unable to break stalemate between mail carriers, postal operator

Canada Post mail carriers are refusing to work overtime as they try to pressure the company to accept terms for a new collective bargaining agreement. (Photo: Canada Post)

Key Takeaways:

  • Canada Post and the Canadian Union of Postal Workers (CUPW) failed to reach an agreement on binding arbitration to resolve their 18-month labor dispute.
  • Canada Post opposes arbitration, preferring a worker vote on its final offer, while CUPW rejects terms based on a government commission's recommendations favoring Canada Post's positions.
  • The dispute centers on operational and financial reforms, including increased part-time work and workload adjustments, amidst Canada Post's significant financial losses.
  • Despite ongoing negotiations, CUPW maintains its overtime ban, and while threatening a full strike previously, has not yet escalated the action.

A Canadian government effort to move the labor dispute between Canada Post and its mail carriers into arbitration appears to have failed as the parties dig in on their respective bargaining demands.

Minister of Jobs and Families Patty Hajdu last week requested that Canada Post and the Canadian Union of Postal Workers (CUPW) consider binding arbitration to resolve an 18-month standoff on a new collective bargaining agreement. But the negotiating committees made no progress on Monday during meetings with federal mediators because Canada Post refused to compromise on terms for an arbitration process, according to a CUPW update posted on its website.

Canada Post has previously objected to the CUPW’s request for arbitration, saying the process would drag on for at least a year and still leave workers without a contract. The postal operator instead wants the government to go around the union leadership and conduct a worker vote on its recent “best and final” offer. It did not comment on Monday’s meeting.

The CUPW, which represents about 55,000 postal workers, complained that Canada Post insists on using recommendations for operational and financial reforms issued last month by a government commission as the basis for arbitration. It previously criticized the Industrial Inquiry Commission for mostly adopting Canada Post positions on increased use of part-time workers for weekend and weekday schedules, adjusting routes based on real-time volumes, and more evenly spreading workloads among mail carriers each day.

Canada Post has been hemorrhaging mail and parcel volumes for years, resulting in $2.7 billion losses since 2018. Parcel losses have accelerated since the CUPW carried out a 32-day strike late last year. The state-owned carrier says parcel demand is down 65% year over year.  

“Canada Post is not trying to resolve this impasse; it is trying to bypass it. Canada Post doesn’t want negotiated agreements. What it wants is to impose its own terms, through government processes, effectively gutting and rewriting our collective agreements by themselves,” the CUPW said in the bargaining update. 

“We are ready to enter binding interest arbitration under agreed-upon terms. We will not accept a process dictated by Canada Post Corp., especially one based on recommendations that ignore the lived realities of postal workers and the future we are fighting for,” it said.

Despite mounting frustration over contract talks, the CUPW maintained its ban on overtime work. There was no mention of escalating to a full strike, as the union threatened last month when a moratorium on pressure tactics ended. 

Meanwhile, Canada Post has suspended deliveries in certain parts of western Canada because of wildfires.

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

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Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com