As the strike by 55,000 Canada Post workers entered its fourth week, could the company and union finally be getting back to the bargaining table?
Friday, the company was expected to deliver its response to a Canadian Union of Postal Workers proposal, through a federally appointed mediator.
The proposal, issued Wednesday, was itself a response to a proposal from Canada Post issued last Sunday. Still, no formal bargaining has taken place since Nov. 28, when the mediator called off talks, saying the two sides were too far apart to reach a deal. The strike began Nov. 15.
Neither side immediately responded to a request for comment Friday.
Labour studies professor Rafael Gomez said it appears the two sides have finally started bargaining in earnest, after having gotten a stern, closed-door talking to from federal Labour Minister Steven MacKinnon last weekend.
“In the meeting, I think they finally got some clarity that the government isn’t intervening,” said Gomez, director of the Centre for Industrial Relations and Human Resources at the University of Toronto.
One reason the negotiations have gone on this long, said Gomez, is that the federal government intervened in previous labour disputes this year by invoking Section 107 of the Canada Labour Code and asking the Canada Industrial Relations Board to order binding arbitration.
“I think that created the impression that they might use Section 107 here,” said Gomez.
Canada Post has previously said it has offered wage increases totalling 11.5 per cent over four years and additional paid leave, while protecting the defined benefit pension and job security provisions.
The union has called for a cumulative wage hike of 24 per cent over four years, as well as suggesting that Canada Post expand into banking.
The company is also seeking to provide weekend deliveries, and have a greater share of its staff be part-time. The union wants full-time workers to do weekend delivery, while the company wants to hire part-time staff to do the job.
Meanwhile, the knock-on impact of the strike is making life even harder for businesses to reach customers, as shipping giants UPS and Purolator both stopped accepting new orders from courier companies.
Couriers such as eShipper, which act as middlemen between smaller e-commerce businesses and large carriers, are among the companies temporarily barred from shipping with Purolator and UPS.
It’s devastating news for small retailers already struggling to reach customers during the peak holiday season, said Dan Kelly, CEO of the Canadian Federation of Independent Business. Many of the small businesses typically use Canada Post to fulfil online orders, said Kelly, and have been scrambling to fill the gap.
“First, there was no Canada Post. If private couriers aren’t an option either, our members are really in trouble,” said Kelly. “It goes from being a very stressful situation to an absolute disaster.”
An eShipper memo to clients on Wednesday said it was a 48-hour pause, but Kelly suspects the pause could become permanent if the strike continues.
With files from The Canadian Press
