A 'lot of ground' remains between Canada Post, workers as strike talks progress

Canada Post temporarily lays off some employees Canadian Union of Postal Workers negotiator Jim Gallant discusses what the union is calling an intimidation tactic by Canada Post.

MONTREAL — Canada Post and the postal workers union found slivers of consensus Tuesday amid talks with a special mediator, but "a lot of ground" remains between them on the key concerns as a countrywide strike entered its fifth day.

"On smaller issues, we were able to find some progress," said Canada Post spokesman Jon Hamilton in a phone interview.

"The special mediator has helped facilitate those discussions. So we're going to continue to be at it. We're committed to getting collective agreements," he said, adding that arbitration is off the table for now.

"There's still a lot of ground to cover."

With deliveries at a standstill, the Crown corporation and the Canadian Union of Postal Workers continue to bargain over a pair of contracts -- one for rural and suburban mail carriers that was discussed Monday, the other for urban carriers that was under the microscope on Tuesday.

The union said progress was made due in part to the presence of Ottawa's top mediator, appointed to the task last week. Peter Simpson, director general of the Federal Mediation and Conciliation Service, spent the start of the week at a hotel in Ottawa shuttling between the parties' conference rooms in a back-and-forth of proposals and potential concessions.

"After 12 months of discussions, the employer finally began to move on the pressing issues. Resolving these issues could pave the way to agreements," union president Jan Simpson said in an update to members Tuesday.

"The urban unit will find out if there is movement on their side."

About 55,000 employees represented by the Canadian Union of Postal Workers walked off the job on Friday, shutting down operations and halting deliveries as the busy holiday season kicks off.

The union has called for a cumulative wage hike of 24 per cent over four years, while Canada Post has offered an 11.5 per cent increase.

Other wedge issues include job security, benefits and contract work for parcel delivery on weekends.

Negotiations between Canada Post and its unionized employees began in November 2023.

The talks come as the federal delivery service faces an unprecedented financial crisis.

In the first half of 2024, Canada Post lost nearly a half-billion dollars. It has reported $3 billion in losses since 2018, as Canadians sent fewer letters while competitors gobbled up even more of the parcel market.

Households received seven letters a week on average in 2006, but only two per week last year, according to Canada Post's latest annual report, which dubbed the trend "the Great Mail Decline."

Both the union and the Crown corporation have put forward service expansion around parcels as a way to boost revenue, but they differ on how to go about it. The union says full-time employees should deliver package shipments on weekends, while Canada Post hopes to hire contract workers.

"What's needed there is a new, flexible delivery model that allows us to provide parcel service on weekends and provide prices that are more competitive than the other services that Canadians are looking for when they're shopping online," Hamilton said.

According to last year's annual report, the postal service's share of the parcel market eroded from 62 per cent before the COVID-19 pandemic to 29 per cent last year, as Amazon and other competitors seized on skyrocketing demand for next-day doorstep deliveries.

On top of weekend work and wage bumps to make up for inflation, the union is seeking higher short-term disability payouts and ten paid sick days per year. It also wants to include corporate vehicles for rural and suburban mail carriers as well as paid meals and breaks.

"Unlike Canada Post's proposals, our demands offer real solutions: fair wages, health and safety, the right to retire with dignity and expansion of services at the public post office," said lead negotiator Francois Senneville in a statement earlier this month.

Amid the sudden halt of Canada Post deliveries -- government benefit cheques are among the few exceptions -- business has shot up at other shipping outfits.

"We have seen a double-digit increase in volumes week over week as we continue to meet the needs of Canadians at this busy time," said Purolator -- majority-owned by Canada Post -- in an email.

FedEx has implemented a "contingency plan" to manage higher volumes, said spokesman James Anderson.

The last postal work stoppage took place starting in late October 2018, when employees carried out rotating strikes lasting 31 days.

Previous postal strikes held in 2011 and 2018 ended when the federal government passed legislation sending employees back to work.

This report by The Canadian Press was first published Nov. 19, 2024.