The federal government is set to announce “new measures” Thursday to help Canada Post deal with financial challenges and “advance its transformation,” amidst a long-running contract dispute between the struggling Crown corporation and its 53,000 workers.
Joel Lightbound, the federal minister for government transformation, public works and procurement, is set to announce details of the new measures Thursday in Ottawa.
A spokesperson for Canada Post said the Crown corporation doesn’t have any details on exactly what measures Lightbound will be announcing.
“We will be following the minister’s announcement closely,” the spokesperson said.
Earlier this week, the Canadian Union of Postal Workers said the Crown corporation was trying to lay the groundwork for “massive” service cutbacks, including ending a moratorium on closing rural post offices, turning some post offices into privately-run franchises, ditching door-to-door delivery, and cutting the frequency of mail delivery.
“The Corporation has taken every chance it can to play up its financial condition, blaming an ‘outdated’ regulatory framework ‘built for a previous era,’” CUPW national president Jan Simpson said in a memo late Monday.
Those four steps are all crucial to making Canada Post financially sustainable, the Crown corporation argued in its submission to an Industrial Inquiry Commission headed by veteran mediator William Kaplan earlier this year. In his May report, which found Canada Post is “effectively insolvent,” Kaplan accepted many of the Crown corporation’s arguments.
Contract negotiations between Canada Post and CUPW have dragged on for more than 18 months and led to a month-long strike late last year.
In early August, 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 108.1 of the Canada Labour Code.
In its fiscal second quarter, Canada Post reported a second quarter loss of $407 million, amidst a large drop in parcel revenue.
