Canadian businesses warn of strike impact on mail's future
Canadian businesses have expressed concern at prospects of mail service disruptions, if strike action goes ahead at Canada Post from next week. Strikes could take place as early as May 25 if a new collective bargaining agreement is not hammered out between Canada Post and the Canadian Union of Postal Workers.
But while Canadian businesses are in favour of the proposals by Canada Post to reduce its costs, and thereby postal rates, through a new labour deal, they are warning that strike action could bring long-term damage to the public’s use of the mail.
The National Association of Major Mail Users expressed concern yesterday at the growing awareness among the Canadian public about possible postal strikes.
A survey of NAMMU members suggested that contingency measures now being prepared by businesses, in the light of possible postal strikes, were “an ominous indication” for the future of the mail.
Kathleen Rowe, NAMMU President, said: “This is a disaster in the making for the Corporation, its employees, and the mail industry who rely on Canada Post for efficient, affordable, reliable service.”
The Canadian Federation of Independent Business wrote an open letter to Canada Post CEO Deepak Chopra yesterday to express the concern of its 108,000 members about the strike, as well as “alarm” at rate rises of up to 4.6% scheduled for January 2012.
“This will only further impact SMEs and push even more businesses to look for alternatives to the postal system altogether. At the same time, for other small businesses, a lengthy mail interruption may negatively impact their firms,” said CFIB president Catherine Swift.
Magazines Canada issued a statement today revealing that it was communicating directly with Federal officials to express concern about the prospects of a postal interruption.
It said it was “encouraging the Government of Canada to assist the parties to find solutions in the context of the fragile economic environment Canada is grappling with”.
“Ballooning” pension liabilities
Canada Post, which has been keeping quiet while negotiations with the union are still underway, has been caught between a rock and a hard place in terms of the demands of Canadian businesses.
While expressing concerns about the possible strike action, the businesses have also been applauding Canada Post’s attempts to reduce its costs in order to keep postal rate rises down – a sticking point with the union, which potentially would prompt next week’s strike.
Swift said the CFIB understood that falling mail volumes were putting financial pressure onto Canada Post, despite its profitability for the last 16 years.
The business group supported Canada Post’s efforts through the CUPW collective bargaining agreement negotiations to reduce pension and benefit costs, saying that government agencies at all levels should be seeking similar ways to address “ballooning” public sector pension liabilities.
“Wage, benefit and pension reforms at Canada Post are absolutely necessary to avoid massive service price increases,” the CFIB president said, describing existing union contracts as “overly generous”.
“We therefore urge Canada Post to not shy away from the tough decisions that need to be made to help contain costs and put pension plans in a more sustainable position.”
Rowe said the mailing industry had been investing to meet the requirements of Canada Post’s modernisation program, Postal Transformation, but with the continuing postal rate increases, have seen little reward for their efforts to help improve network efficiency.
She called on Canada Post and its union to remain at the negotiating table and step away from the “media glare” to push for a “responsible settlement”.
“Mail is a vital, tactile communication channel that works beautifully in concert across a broad media platform. We acknowledge there are tough issues still to be settled at the table but we urge the parties to work through to settlement. All of our livelihoods depend on it,” said Rowe.
