Canada Post negotiations update

Canada Post negotiations update

As the negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW) appear to be hitting a deadlock, the postal operator has announced that it is “taking steps to respond to the rapidly deteriorating business situation”. In a statement posted today (5 July) Canada Post said that it has notified the CUPW that it will be changing the terms and conditions of employment for all employees represented by the union, starting this Friday (8 July).

Canada Post claimed: “The uncertainty caused by the prolonged negotiations and the union’s strike mandate is having a negative and escalating impact on the postal service.”

According to Canada Post, customers have been looking for alternative solution providers because of their concerns of a work disruption.

“Nearly all of our largest e-commerce customers have already moved most or all of their parcel volumes to other carriers, resulting in a volume decline of at least 75% from these customers,” claimed Canada Post.

“The number of parcels arriving at our largest plants via transport trucks has declined to the point where there often are not enough parcels to last an entire processing shift.

“Lettermail is down in many facilities by as much as 50 per cent and over the weekend, commercial customers deposited half the mail they usually deposit.”

Canada Post said that it is now “using the means provided in the Canada Labour Code” to respond to the “rapidly deteriorating volumes”; and then it spelt out what this will mean.

“As of Friday, July 8, 2016, the terms and conditions of the current collective agreements will no longer apply,” said Canada Post. “Under the new terms and conditions, employees will continue to receive their regular pay and some benefits such as applicable prescription drug coverage. Other items will be cancelled in line with the statutory minimum conditions established under the Canada Labour Code. The Corporation will also have the flexibility to adjust staffing according to the amount of work required.

“In order to take this step, Canada Post has followed the procedural requirements and issued a 72-hour notice to the union. The issuing of the notice does not necessarily mean that Canada Post will not be operating on Friday. It allows the Corporation to take measures that are necessary to respond to the changing business reality.”

Canada Post also informed the CUPW yesterday (4 July) that the offers it presented on 25 June are to be considered “final”.

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