The union representing Canada Post workers tabled a counteroffer at the bargaining table Wednesday after the Crown corporation’s ‘final’ contract offer was voted down in early August.
The counteroffer includes a 20.3 per cent wage increase over four years, with raises of 9 per cent, 4 per cent, 3 per cent, and 3 per cent, respectively.
It exceeds the Crown corporation’s ‘best and final’ offers from May, which provided for a compounded increase of 13.59 per cent.
“As CUPE flight attendants have made so visibly clear, the best deals are reached at the table,” says Jan Simpson, president of the Canadian Union of Postal Workers. “CUPW is focused on ensuring good, stable jobs for all postal workers and strengthening the public post office.”
More mediated talks are scheduled for Friday and next Monday.
Steven Tufts, an associate professor of labour at York University, said he believes the counter offer suggests that the two parties “are still pretty far apart.”
Tufts said that in its counteroffer, the union is still urging Canada Post to explore other alternative revenue sources to expand service and grow its business, contrary to a May report released by Commissioner William Kaplan of the Industrial Inquiry Committee.
Canada Post and CUPW did not respond to The Star’s request for comment on the negotiations and the counteroffer.
On Aug. 1, just under 81 per cent of the 53,000 eligible CUPW members cast their ballots — ordered by Federal Jobs Minister Patty Hajdu — to vote on the Crown corporation’s offer.
The urban unit voted the offer down 68.5 per cent to 31.5, while members of their suburban and rural unit turned it down 69.4 per cent to 30.6.
The workers have been in a legal strike position since May 23, but so far have limited their actions to an overtime ban.
Larry Savage, a labour studies professor at Brock University, said that both parties returning to negotiations is a positive sign that they want to reach a negotiated settlement.
But after nearly two years of on-again, off-again talks, Savage and other experts say the road to a mutually agreed deal remains unclear.
Although postal workers have tried to draw parallels with the Air Canada flight attendants’ strike, Savage said the two groups have completely different strategic leverage, with postal workers negotiating from a position of weakness.
“Public opinion on the Canada Post dispute is mixed at best, and lots of folks have tuned it out completely,” he said. “Most importantly, CUPW has actually requested the federal government impose binding arbitration. That’s a clear sign that the union recognizes it lacks the leverage necessary to sustain a successful strike.”
He noted that about a third of postal workers backed the employer’s final offer last month, signaling a lack of unity.
“I believe layoffs could indeed occur as the employer attempts to press the union,” Savage said.
The Crown corporation has said it lost $10 million a day in June.
What is also weighing on the two parties, Savage said, is the Kaplan IIC report, which found the postal service effectively bankrupt and in urgent need of reforms to remain afloat.
Kaplan suggested Canada Post should be allowed to close more rural post offices, open more community mailboxes, and offer weekend parcel delivery with part-time workers.
The union argued that the report “skews heavily in favour of Canada Post’s positions,” and that there is no guarantee that “if these changes are made, Canada Post will increase its parcel business.”
“I think the Industrial Inquiry Commission report really undermined the union’s bargaining position,” Savage said.
The federal government must confront the future of Canada’s postal service, Savage added, but is likely awaiting this round of bargaining to end before tackling possible restructuring.
