Canada Post, union seeking 30-day ‘cooling off’ period with no shutdown

The union representing postal workers across the country is proposing a 30-day cooling off period to Canada Post management to address concerns about “uncertainty” in the mail system and give negotiations a chance to succeed.

As for online shoppers who received parcels in the mail: “There are alternative carriers such as Purolator, UPS, FedEx and others that Canadians can use, so the impact of a Canada Post strike may not be significant for Internet commerce”.

Canada Post is offering to keep the status quo for existing plan members, but wants to switch the company’s pension plan from a defined benefit plan, to a defined contribution one. A note at the bottom of the document labelled “secret” says that the Privy Council Office, which aids the prime minister and cabinet, was also “developing multiple options in order to fast track legislation thru (sic) the usual process”.

It’s tempting to describe the ongoing labour negotiations between Canada Post and the Canadian Union of Postal Workers as a fight between two dinosaurs headed for the tar pit.

Canada Post even threatened to lock out its workers as early as Monday.

“We are always left with unresolved issues when a contract is settled through arbitration”, says CUPW President Mike Palecek.

Negotiations have been taking place over the past eight months, including assistance from federal mediators, but both sides are reportedly far apart on major issues. The contract was changed to an different agency, because – claimed the CUPW – Canada Post could avoid working with unionized workers.

The union has yet to respond to the Crown corporation’s proposal. Many private sector companies have moved to defined contribution plans because they reduce costs for companies and shift the risk for future payouts onto employees, who are no longer guaranteed a set return in retirement.

“I’ve made it very clear the union has our full support to resist any attempt to do that and I think there are other ways for the corporation to try to work with the union”.