Canada Post and the union representing its 53,000 workers appear to be sliding further apart after the Crown corporation accused the union of adding new contract demands in its latest proposal to end an 18-month dispute.
The Canadian Union of Postal Workers met with the Crown corporation in Ottawa Wednesday and provided some answers to questions about the union’s latest contract proposal.
In an emailed statement early Wednesday evening, Canada Post said CUPW had hardened its position in some areas, not made sufficient progress in others, and even added new demands.
“Unfortunately, CUPW has either maintained or hardened its position on many items and added new demands, and the gap between the parties remains substantial,” Canada Post said. “Several proposed items would increase the Corporation’s operational costs.”
The Crown corporation acknowledged that CUPW had agreed to the use of part-time employees to help with weekend delivery, but said the union’s proposal was unworkable.
“While the union’s offers included some part-time employee component to address weekend delivery, CUPW’s proposed approach remains unaffordable, problematic and complex to manage,” Canada Post said.
After carefully reviewing CUPW’s comprehensive offers over the past few days, the Corporation today urged the union to revisit its offers to align with the realities confronting the company: “We remain open to reviewing and discussing amended proposals.”
Judging by its statement, Canada Post appears to be on the verge of walking away from negotiations, said York University labour studies professor Steven Tufts.
“This isn’t leaving the table but it’s close,” said Tufts.
In an emailed statement, the union acknowledged the meeting but didn’t provide any details.
But the statement hinted that Canada Post’s latest tweaks didn’t move the needle all that much.
“After the overwhelming rejection of Canada Post’s so-called ‘best and final offers’ by our membership, the Corporation will have to demonstrate that it has moved significantly from its previous positions in order for our members to consider ratifying collective agreements,” the union said. “Our national overtime ban remains in effect until further notice.”
In a memo posted to the union’s website before the meeting, CUPW national president Jan Simpson said Canada Post had been revising its “final” offer to address union proposals.
“Hopefully, at this meeting, we’ll finally see some responses from them,” Simpson said. “Your negotiators remain committed to reaching ratifiable collective agreements at the bargaining table.”
The two sides had been expected to meet last week after the union presented its latest contract offer, but Canada Post negotiators asked for more time to understand details of the offer.
The meeting comes a day after Canada Post announced it lost $407 million in the second quarter.
Canada Post reported plummeting parcel delivery revenue, dropping by $288 million, as they shipped 25 million fewer packages in Q2 compared to a year earlier as customers sought more reliable options.
Contract negotiations between Canada Post and the Canadian Union of Postal Workers have dragged on for more than 18 months and led to a month-long strike late last year.
Earlier this month, CUPW members rejected the Crown corporation’s “final” contract offer in a vote overseen by the Canada Industrial Relations Board after an order from federal jobs minister Patty Hajdu, who used her authority under Section 107 of the Canada Labour Code.
Members of CUPW’s 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. Just under 81 per cent of the 53,000 eligible CUPW members cast their ballot.
On May 28, Canada Post made what it called its “final” contract offer, which included a 13 per cent wage hike spread over four years, as well as a $1,000 signing bonus.
Two days later, it asked Hajdu to order a vote on the offer. On June 12, Hajdu ordered the CIRB to organize a vote.
Canada Post has argued it needs a dramatic restructuring of its operations, an argument supported by a key report from veteran mediator William Kaplan in May.
In his report, Kaplan said the Crown corporation was effectively insolvent.
Kaplan’s May 15 report suggested the use of community mailboxes, the elimination of home delivery except for parcels, and getting rid of some post office locations and replacing them with franchises.
Kaplan also suggested expanding parcel delivery to seven days a week, with the use of part-time and temporary employees.
CUPW members have been in a legal strike position since May 23, but their strike action has so far been limited to a ban on overtime work.
