Canada Post says volumes down 50% as strikes continue

Canada Post has hit out at the Union responsible for ongoing industrial action, after mail volumes across the country fell as much as 50%. Figures suggest that customers have been reluctant to use the postal service since rotating strikes started last week.

The operator said in a statement: “This decline in volume comes at a time when the company is already struggling to address significant business challenges.

“Canada Post does not understand why the Canadian Union of Postal Workers (CUPW) would willingly damage the business with strike action when the company has put a strong offer on the table.”

The company claims that mail volumes in Canada have fallen by 17% since 2006, and it is “struggling with a pension plan solvency deficit of $3.2bn”.

The CUPW continued with its course of industrial action last night, when 4,000 postal workers in Edmonton and Calgary staged a walk-out.

Commencing at 11pm EDT on Tuesday, the strike will last for 24 hours.

Gord Fischer, national director of the Prairie region for CUPW, explained the reason behind the union’s choice for its Edmonton and Calgary locals to go out next:

“Canada Post is refusing to put proper staffing in place, leading to overwork and forced overtime. Routes don’t get covered and mail ends up sitting in the depots, leading to complaints about service.”

“The union has clear demands about improving our service and making sure adequate staffing is in place. Canada Post wants us to do more with less, regardless of what that does to the public’s postal service.”

As of yesterday (7 June), Canada Post said that it had proposed the following for current regular employees: annual wage increases that will bring the top wage rate to $26 an hour; continued job security; no changes to a Defined Benefit pension plan; comprehensive medical benefits for employees and retirees; and generous vacation leave that gives employees up to seven weeks off each year.

Canada Post said it has proposed a new wage and benefits package for employees hired in the future. This includes a starting wage of $19 an hour that rises to $26 an hour over seven years; up to six weeks vacation; and fully indexed defined benefit pension by age 60.

The package for new employees is still superior to the wages and benefits offered by competing logistic and delivery companies. Equally important, these changes will help Canada Post manage labour costs that take-up two-thirds of its revenues, the company said.