In an attempt to turn up the heat on Canada Post and help end a lengthy contract dispute, postal workers say they’ll stop delivering flyers starting Monday.
The announcement Friday from the Canadian Union of Postal Workers came just over three weeks after the union presented a counter-offer to the Crown corporation’s “final” contract offer.
“Instead of responding, they issued an ultimatum: change our offers or they would walk away, with no commitment to return,” CUPW national president Jan Simpson said in a written statement. “We’ve been left with no choice but to change our strike activity with the hope that Canada Post finally takes us seriously and returns to the bargaining table.
The union said it was stopping its ban on members working overtime, which had been in place since May 23.
In a written statement, Canada Post blasted the union’s decision, saying it’s hurting its own members, the Crown corporation’s already-shaky bottom line, and small businesses who use the flyer delivery service.
“We encourage CUPW to come back with workable solutions that reflect our current reality and get the parties closer to a resolution. We’re disappointed that the union chose not to do so, and instead chose strike activity that will have further negative impacts on the company,” Canada Post said, noting that it had a $407 million operating loss in the second quarter.
Ditching flyer delivery is a reasonable step for the union to take, but isn’t risk-free, said McMaster University labour studies professor Stephanie Ross.
“The other side has its tools to respond,” said Ross, adding that layoffs or even a lockout are potential tactics for Canada Post.
“Layoffs are possible, especially if people aren’t delivering flyers. They could say ‘well, we don’t need as many people on the ground,’” Ross said.
The head of an association representing small businesses slammed the union’s decision, saying it’s hurting businesses caught in the crossfire.
“It’s taking away a low-cost marketing option from tens of thousands of small business owners at a time when you know their world’s crashing around them,” said Dan Kelly, CEO of the Canadian Federation of Independent Business.
While CUPW is trying to increase the pressure on Canada Post to reach a deal, Friday’s move could be self-defeating, Kelly argued.
“Our data shows that every time there is a job action, even a threat of a job action, more and more customers leave Canada Post never to return. And that’s the fire that the union is playing with,” said Kelly. “I understand that they may be thinking this is motivating to Canada Post or to the government to get a deal. But it is deeply affecting the overall health of Canada Post Corporation and therefore their members’ jobs.”
The union laid blame for the labour dispute at the feet of the Crown corporation as well as the federal government, saying that both have kept negotiations from progressing.
It also took a shot at veteran mediator William Kaplan, whose Industrial Inquiry Commission found that Canada Post is effectively insolvent.
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 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.
Canada Post has argued it needs a dramatic restructuring of its operations, an argument supported by a key report from Kaplan in May.
Kaplan also said that there’s an impasse in bargaining, suggested arbitration wouldn’t be a good choice to deal with Canada Post’s need for restructuring, and said a “final” offer would be the third option for an end to the dispute.
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.
