Sides in Canada Post strike remain far apart on several issues, union says

As the Canada Post strike drags on this weekend, a spokesperson for the federal labour minister says the government is making sure both sides have everything they need to reach a deal. 

In a statement sent to CBC News on Saturday, spokesperson Matthieu Perrotin pointed out that Peter Simpson, director general of the federal mediation and conciliation service, had been appointed to support negotiations between Canada Post and the union representing its striking workers

Labour Minister Steven MacKinnon initially announced Simpson's appointment on Thursday, before the workers went on strike the next day.

"Parties must reach a deal, and Canadians are counting on them," Perrotin says in the statement. "Negotiated agreements are always the best way forward."

Canada Post workers went on strike early Friday after failing to reach an agreement with their employer, shutting down the corporation's mail service across the country.

• What impact is the Canada Post strike having on you? What should be done about it? Leave your story, questions and opinions here and we may read them on the Nov. 17 episode of Cross Country Checkup

The Canadian Union of Postal Workers (CUPW) says about 55,000 workers in its urban, rural and suburban mail carrier bargaining units are off the job, adding that little progress has been made during bargaining.

"Canada Post had the opportunity to prevent this strike, but it has refused to negotiate real solutions to the issues postal workers face every day," the union said in a statement.

"Instead, Canada Post left us no choice when it threatened to change our working conditions and leave our members exposed to layoffs."

Mail and parcels will not be processed or delivered during the strike, and some post offices will be closed, according to the Crown corporation. Service guarantees will be affected for items already in the postal network, and no new items will be accepted.

The two sides began talks toward a new contract on Nov. 15, 2023.

Canada Post's latest contract offer included annual wage increases that amounted to 11.5 per cent over four years. It also offered protection of the defined benefit pension for current employees, as well as job security and health benefits.

WATCH | Is a shift in Canada Post's business model necessary?:

In wake of strike, is a shift in Canada Post’s business model necessary? | Canada Tonight

11 days ago

Duration 5:04

Canada Post workers went on strike early Friday after the Canadian Union of Postal Workers (CUPW) said little progress was made during bargaining. York University labour expert Steven Tufts broke down some of the challenges to Canada Post's business model and overall competitive pressures. CORRECTION: A previous version of this description incorrectly quoted York University labour expert Steven Tufts saying CUPW had not built the large-scale public campaign needed to pressure Canada Post into changing its business model, despite Canada Post struggling financially. While Tufts did speak to Canada Post's business model, he says CUPW has pressured Canada Post to broaden their mandates and expand their business model to offer a range of new services.

CUPW said that wasn't enough and that the two parties remain far apart on several issues.

Canada Post says it has lost $490 million in the first half of 2024, part of a total $3 billion lost since 2018. The company says a strike will only further contribute to its already dire financial circumstances and that the union's demands will lead to more fixed costs that Canada Post can't afford.

"Both sides are still working towards achieving negotiated settlements and discussions will continue," Canada Post said in a statement on Saturday.

'Pressure is going to become more and more intense'

Labour Minister Steven MacKinnon signalled that the Liberal government is not currently looking to intervene and end the strike, saying Friday that he is "not looking at any other solution other than negotiation right now."

Ian Lee, an associate professor at Carleton University's Sprott School of Business, said there is "a precedent" for the federal government to legislate striking Canada Post workers back to work and that the likelihood of it happening again rises as the job action drags on and third parties call on Ottawa to act.

"I think day by day by day, the pressures on the minister of labour and the government — [from] mayors, MPs, chambers of commerce, Canadian Federation of Independent Business — the pressure is going to become more and more intense," Lee told CBC News.

WATCH | Prolonged Canada Post strike would be 'devastating' for seniors, advocate says: 

Prolonged Canada Post strike would leave seniors ‘vulnerable,’ advocate says

11 days ago

Duration 5:47

On the second day of the Canada Post strike, the founder and CEO of CanAge, Laura Tamblyn Watts, warns about the ‘devastating’ effect the strike could have on seniors if it goes on for several days or weeks. Watts says seniors overwhelmingly rely on mail for receiving bills and medical prescriptions.

Dan Kelly, president of the Canadian Federation of Independent Business, said the postal strike is "really bad timing" for small businesses with Christmas and Black Friday around the corner.

The strike has forced Kim Dowds, an Ontario-based small business owner who sells items online from estate sales, to pivot.

Dowds said she'll have to stick to selling smaller items from her online shop, The Red Rooster, because shipping larger orders through private couriers will be too expensive. 

"I'm going to have to adjust and not sell the big stuff. And the big stuff is sometimes where the money is, right?"

She said she knows some other small business owners in rural or remote areas who will have to put deliveries on hold entirely.

"Because Canada Post is the only game in town, they're going to have to pause during the most important time of the year for selling."

• How does the strike affect you? What should be done about it? Leave your story, questions and opinions here and you might be featured on Cross Country Checkup's Nov. 17 show.