Judge delays Canada Post bid for union deal
A federal judge has brought a temporary halt to efforts to finalise a new work contract for urban-based postal workers in Canada. Judge Luc Martineau ruled that complaints from the Canadian Union of Postal Workers against the government’s appointment of former judge Coulter Osbourne as arbitrator should be heard in court this January.
Martineau ruled on Thursday that arbitrators are usually agreed by both parties in a labour dispute, but that on this occasion Osbourne did not have the backing of the union.
“There is clear evidence of harm and the instances of harm alleged by the union are not hypothetical or conjectural, as argued by Canada Post,” the Judge said in his ruling.
The union said on Friday the decision was a “significant victory” in its fightback against back-to-work legislation adopted at the end of June 2011 to end the national strike and lock-out of postal workers.
The legislation set some basic elements of a new long-term collective bargaining agreement with Canada Post, including salary increases, but left the details of a new deal to an arbitration process. This would see an arbitrator going through contract proposals from Canada Post and the union, then selecting one or other to form the basis of the new deal.
“Questioning the process”
While the union has launched a separate action earlier this month challenging the back-to-work legislation itself on constitutional grounds, the complaint against Osbourne’s appointment suggested he did not have sufficient experience in labour relations and does not speak French.
Denis Lemelin, national president at CUPW, said: “This decision shows that the union is on the right track. We are questioning the process by which this government has forced its will on postal workers.”
June’s series of strikes and subsequent shut-down of Canada Post followed months of negotiations between Canada Post and CUPW over the possibility of a new collective bargaining agreement to run from February 2011 through to 2015.
Canada Post has sought to limit pay increases, add more flexibility and establish a new sick leave system in order to cut its operating costs to respond to dramatic declines in mail volumes.
The union, representing around 48,000 urban and suburban postal workers in Canada, has argued that the Corporation has been profitable for 16 years, and should reward its workers as a result.
“Long-term detriment”
Earlier this month, Canada Post’s executives warned that last year’s results had been largely over-stated thanks to a one-off tax benefit, and that in actual fact it currently has a “massive mismatch” in its costs and revenue”.
Commenting on the decision by Judge Martineau to stay proceedings in the arbitration process, Canada Post warned that it would merely add to the difficulties the Corporation is facing.
Spokesperson Anick Losier told Post&Parcel: “This decision further delays any conclusion to the current round of arbitration with the Canadian Union of Postal Workers to the long-term detriment of the company.
“Urgent action is required to address Canada Post’s labour cost structure in order to help protect the long-term sustainability of the corporation. We remain committed to the process,” the Canada Post spokesperson added.
