The complexities of the Canada Post labour dispute
by Brandon Mayer
The situation with the Canada Post labour dispute is ever evolving. Most recently, the Canadian Union of Postal Workers – which represents the crown agency’s workforce – proposed binding arbitration as a way to end the dispute. Canada Post rejected the proposal, taking a hard line after its most recent contract offer wasn’t even put to a vote by the union.
As is common in labour disputes, neither side is being particularly amicable. Canada Post is facing what many would argue is a financial crisis, as the corporation is heavily regarded as being “behind the times”. While many delivery companies now deliver 7 days a week, dropping packages right at a customer’s doorstep in as little as 24 hours, even on holidays, Canada Post remains rooted in “government hours”, operating Monday through Friday during standard business hours, and closing for all holidays, including days not considered statutory holidays.
Offers for wage increases have been tabled by Canada Post and rejected by the union, with CUPW feeling that greater increases are needed in a difficult economy. Meanwhile, public support for Canada Post workers has been generally small during this most recent job action, with some arguing that postal workers are already very well paid and have better hours and working conditions compared to workers in other industries. Members of CUPW have been heavily campaigning for public support.
The final offer tabled by Canada Post includes a 14% wage hike over 4 years, as well as an end to compulsory overtime, and a signing bonus of up to $1,000. Last week, Canada Post was urging the federal government to force CUPW to put the offer to its members for a vote.
“CUPW strongly believes that the Canada Post requested government-imposed vote on Canada Post’s last global offers will not bring labour relations peace to these parties for the foreseeable future, notwithstanding the outcome of a forced vote,” said CUPW in a statement on May 31. “Once again, this would be another unwarranted government intervention in the free collective bargaining process.
“In order to bring certainty to customers and Canadian Businesses and in light of the very particular circumstances surrounding the last improper government intervention in December 2024, we are inviting Canada Post to fair, final and binding arbitration to resolve all outstanding issues at the bargaining table for both bargaining units. At this time and in these circumstances, only arbitration can end the ongoing labour dispute fairly and expeditiously.
“A forced vote will not necessarily terminate the labour dispute, which should be the objective of Canada Post, which has expressed concerns about the severe impact of the labour dispute on it’s [sic] business. We believe the Minister has the same objective in bringing labour peace to all Canadians.
“In every other bargaining relationship where the government has interfered with the right to strike as it did in 2024 with Postal Workers, the government has imposed fair and binding arbitration to resolve bargaining differences as required by the Law. During the arbitration process, the employees cannot strike, and the employer cannot lock-out the employees which is not the case in respect of the conduct of a forced vote. Moreover, if the Employer’s last offers are rejected by the employees, the dispute continues arguably dividing the parties further and bringing more harm to Canadians.”
The statement from the union refers to a December 2024 Canada Post strike that impacted the delivery of Christmas parcels across the country. The timing of that strike was undoubtedly strategic, hoping to show Canadians just how critical the postal service is by taking it away at the busiest time of year. However, many have brushed off the move by stating that they found better customer service with other couriers as a result of the strike, and kept their business elsewhere. The 2024 strike was ultimately forced to come to an end by the federal government.
Canada post lost approximately $841 million in 2024, a significant portion of which is estimated to be the product of the strike action. Canada Post has been running at a deficit for the last 7 consecutive years. While taxpayers do not directly fund these deficits, it’s clear that the crown corporation cannot run at a loss forever, explaining the employer’s reluctance to agree to a binding arbitration that could lead to even higher wage increases.
A recent report released by a federal mediator directly stated that Canada Post is approaching bankruptcy, and that changes need to be made. Recommended changes provided in the report include the closure of rural post offices, the end of door-to-door mail delivery in all areas that still currently have it, and the introduction of weekend delivery.
Meanwhile, CUPW does not believe that Canada Post is going far enough in its contract offers. As is once again very common in labour disputes, the two sides appear much too far apart for a simple resolution, and by the time a settlement is reached, it’s likely that both parties will feel at least somewhat unhappy with the outcome.