The national mail carrier of Canada reached a two-year stop-gap employment agreement with the Canadian Union of Postal Workers in order to avoid work disruptions, according to statements from both groups.
Canada Post and the Canadian Union of Postal Workers (CUPW) have agreed to two new short-term labor contracts, according to statements from both groups.
The national mail carrier of Canada said it reached a two-year stop-gap agreement with CUPW in order to avoid work disruptions and ensure smooth operations during the upcoming holiday season. The agreements still require ratification by members of the CUPW.
Typically, past contracts had been negotiated for a period of four years, but Canada Post is facing a host of “complex” issues, including declining mail volumes and a growing pension obligation.
“This [short-term] approach provides more time for thoughtful discussion and analysis on how to best address these issues without the ongoing threat of a work disruption,” the company said.
Mike Palecek, national president of CUPW, said that although the union had reached tentative agreements for both its urban and rural and suburban mail carrier (RSMC) collective bargaining units, many issues remain unresolved.
“One year from now, we will be heading back to the bargaining table to finish the job,” said Palecek. “There is much work to be done.”
He said CUPW will prepare a third-party pay equity report, which it believes will show compensation for RSMCs is 30 percent lower than their urban counterparts for work of equal value.
If Canada Post does not implement wage changes based on the findings, the union will strike, he said.
In addition, Palecek said the union is looking to expand services to the public, including postal banking, and maintain its defined benefit pension plan in the next round of negotiations.
He urged union workers to “prepare for battle” and to save money in the event of a strike.
“Members should not believe for a second that we will win without a fight,” said Palecek. “The next year and a half will decide the future of the post office for decades. Next year, we will return to the bargaining table, knowing the results of the government review of Canada Post, pay-equity report in hand, and our right to strike intact.”
Canada Post, union workers agree to short-term labor deal
