Postal Workers’ Union Refuses Arbitration With Canada Post

The lockout notice – due to come into force today (Friday, July 8) – has been extended by Canada Post as the federal Labour Minister MaryAnn Mihychuk urged the Canadian Union of Postal Workers (CUPW) to settle with Canada Post through binding arbitration.

Canada Post has countered the union proposal, saying it is willing to continue bargaining for another month but only if the union agrees to binding arbitration in the event a deal can’t be reached – a proposition CUPW had previously rejected.

The union has called Canada Post’s offer for wage increases “an insult”, as most of the increases are below one per cent, adding that it wants to see wage increases of between two and three per cent, depending on the employee’s pay grade.

Canada Post is extending a lockout notice given to its employees until Monday.

As many question whether or not to stick something in the mail amid a looming lockout at Canada Post, local charities in Ottawa say they would be hit hard.

The Canadian Union of Postal Workers proposed the 30-day extension in exchange for the union dropping its unfair labour practices complaint.

But the two sides are still believed to be very far apart.

“We want to have meaningful discussions with management, but getting a guaranteed bailout from an arbitrator at the end of it isn’t the incentive they need to stop playing these games with the public”, Palecek said in the statement.

The two-tiered pay structure has been in place since 2003 when Canada Post and the CUPW first agreed to a collective agreement for the rural and suburban carriers. The contract was changed to an different agency, because – claimed the CUPW – Canada Post could avoid working with unionized workers.

Tom Knight, an associate professor in the Sauder School of Business at the University of British Columbia, said it looks like Canada Post is “prepared to pull the trigger on a work stoppage” as neither side is “interested in blinking”.