Canada Post workers have voted down the Crown corporation’s ‘final’ contract offer.
The voting, ordered by the federal government and monitored by the Canada Industrial Relations Board, opened on July 21 and wrapped up Friday at 5 p.m.
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 federal jobs minister Patty Hajdu to order a vote on the offer.
On June 12, Hajdu ordered the CIRB to organize a vote.
The order came roughly a month after a key report from veteran mediator William Kaplan, who said the Crown corporation was effectively insolvent.
The union has repeatedly criticized the Crown corporation, saying it was trying to avoid a negotiated settlement by asking Hajdu to order a vote, and by insisting any arbitration be based on Kaplan’s report. The report was done as part of an Industrial Inquiry Commission ordered in December by then-labour minister Steven MacKinnon, ending a month-long strike which began last November.
Kaplan also said 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.
CUPW members have been in a legal strike position since May 23, but their strike action has thus far been limited to a ban on overtime work.
CUPW actively encouraged its members to vote against the offer, which it called an attack on collective bargaining.
“Once again, the Government has stepped into our bargaining process, attacking our rights and taking the Employer’s side. We didn’t ask for this fight, but we are ready to face it,” CUPW said in one bulletin to members.
The Crown corporation has repeatedly insisted that it needs substantial restructuring, and has said it lost $10 million per day in June, calling those losses “unsustainable.”
The association representing Canada’s small businesses had said its members — who had already been deserting Canada Post because of the uncertainty — would likely speed up their exit if the labour disruption continues much longer.
According to the Canadian Federation of Independent Business, small businesses lost between $75 million and $100 million per day during last year’s strike.
“Yo-yoing in and out of strike mandates is causing Canada’s small businesses — one of Canada Post’s last groups of profitable customers — to leave for good,” said Dan Kelly, CFIB president. “Small business owners and other consumers need certainty. 13 per cent of small businesses permanently dropped usage of Canada Post during the 2024 strike and every time Canada Post goes on strike, more and more businesses leave forever.”
A member survey by CFIB last month found that another strike could lead up to two thirds of businesses to ditch Canada Post for good.
More to come …
