The union representing Canada Post's urban workforce says its rotating 24-hour strikes will move to Red Deer, Alta., this weekend.

The Canadian Union of Postal Workers made the announcement Friday evening, saying that Canada Post had rejected a compromise offer which would have reinstated the union's collective agreement.

Labour Minister Lisa Raitt issued a plea for an end to the company's labour woes earlier in the day.

But the union said it intends to continue its rotating strikes through the weekend.

"This behaviour on the part of Canada Post corporation is totally unacceptable," said Denis Lemelin, the union's national president and chief negotiator.

"We are showing that we are willing to suspend our strike in good faith and with goodwill, as the minister requested. Once again, Canada Post is rejecting any of our efforts to resolve the issues."

Canada Post released a statement late Friday saying that reverting to the old collective bargaining agreement would be "completely unacceptable."

"By maintaining the uncertainty for customers and hurting our revenues, the union's proposal is tantamount to asking for full pay to remain on strike," the statement said.

Negotiations between the union and management were due to continue Friday night into the weekend, the union said.

Postal workers were on strike in Kitchener, Ont. and Quebec City on Friday, while the union and Canada Post traded barbs, blaming each other for a lack of progress at the bargaining table.

More than 1,500 workers walked off the job in those two cities late Thursday night, for the latest in the series of 24-hour strike actions that began in Winnipeg last week.

Their work stoppage coincided with the end of day-long strikes in 13 small to mid-sized communities from the Yukon to Prince Edward Island on Thursday. Other cities directly affected by the walkouts include Montreal, Victoria, Calgary and Edmonton.

In a statement announcing its strike targets, the Canadian Union of Postal Workers said they were chosen as examples of centres affected by recent cost-cutting measures that saw the loss of 350 jobs with the closure of a mail-sorting plant in Quebec and the transfer of parcel operations from Kitchener to Toronto.

According to CUP-W Ontario Region National Director, the changes affecting his members make little sense.

"Kitchener's mail doesn't need to take the scenic route," Gerry Deveau said. "It's not exactly the most efficient way to process mail."

While Canada Post argues that it must cut costs in light of the combination of lagging demand for its services and looming pension obligations, the union says the Crown corporation is turning a profit and can afford to do better.

Canada Post says it has seen mail volumes cut in half since the rotating strikes began, and must therefore start making changes right away.

Starting on Monday, it will adjust staffing levels at its mail processing plants countrywide. Canadians who usually enjoy daily home mail and package delivery will also see their service cut back to just three days a week. Mail collection will continue, however, and post office outlets will maintain their usual hours of service.

And those who collect their mail from rural or community mailboxes will not see any changes, as they are serviced by postal workers covered by a separate collective agreement.

In its latest proposal, Canada Post offered its urban carriers annual wage increases and job security, while leaving the defined benefit plan and medical benefits untouched. New hires would start at $19 an hour with the prospect of collecting a defined benefit pension by age 60.

Representing some 50,000 urban Canada Post employees, CUP-W rejected the Crown corporation's offer as an unfair two-tier employment system.

When postal workers last hit the picket lines in 1997, lawmakers ordered them back to work after just two weeks. Earlier this week, Raitt said she has no plans to legislate an end to the job action.

"A deal they reach themselves is the best deal," she told CTV's Power Play.

With files from The Canadian Press