The week that was: June 24, 2011
Canada Post lock-out turns into a filibuster, US Republicans offer postal reform proposals after USPS refuses pension payments, and Royal Mail shows how agreements can be achieved with unions… This week has seen the continuing postal lock-out dominating the Canadian Parliament, after back-to-work legislation was introduced by ministers seeking an end to the lock-out of its workers by Canada Post. Debate on Thursday went through the night, and is continuing even as Post&Parcel signs off for the weekend this afternoon, with opponents to the government’s proposed wage deal for Canadian Union of Postal Workers maintaining a full-out filibuster in the attempt of delaying the legislation as long as possible. As the politicians appear to be reading out every single email sent to them about the postal strikes and lock-out, proceedings could continue for some time. The legislation then requires the Senate’s approval before the back-to-work measures can be enforced.
South of the border in the US, the financial pressure faced by the US Postal Service was taken up a notch with the announcement that USPS needs to stop paying its employer’s contributions into the federal pension fund. Though employees and retirees have been reassured that their pensions are safe because of a $6.9bn surplus in the fund, the Department of Justice must decide on the legality of the move to stop payments. The move by USPS coincided, perhaps intentionally, with the unveiling of important postal reform legislation by House Oversight Committee Chairman Darrell Issa. Pointedly refusing to help out the USPS on its pension overpayments, Issa would allow five-day delivery, while setting up a Commission to force through more than $2bn in postal facility closures. Issa’s bill also sets out arrangements for an independent Agency to manage a receivership process if USPS goes into default on its government payments as expected this September.
Meanwhile across the Atlantic, the Royal Mail reached a deal with the Communication Workers Union that averted a postal strike in London. The two parties have agreed on an operational plan, which includes the guarantee that no compulsory redundancies will be made. Certain relocating workers will receive more money and transport, while Royal Mail has also promised a “more consensual approach taken by management when consulting and offering options to staff affected by change”. Postal facilities in South London and East London will still be shut down, and 750 jobs will be cut, with around 580 people expected to leave the company on voluntary redundancy packages – worth up to two year’s salary. A further 700 full-time employees have also expressed an interest in the package, with more than 300 of them being progressed, Royal Mail said.
And Finally…
If you missed last month’s informative World Mail and Express Europe conference, you can now find videos of key speakers in our videos section »
