Canada Post says it has issued a lockout notice to the union representing its postal workers, hours after a strike notice was issued.
But the Crown corporation says it does not plan to cease operations at this time.
“Canada Post has notified the union that unless agreements are reached, the current collective agreements will no longer apply as of Friday,” spokesperson Lisa Liu said in an email. “While it is called a notice of lockout, Canada Post does not intend to cease any of its operations at this time”
The corporation went on to say the notice was filed with the union and Labour Minister Steven MacKinnon and was done so under the Canada Labour Code so as to adjust operations “based on its operational realities and business needs.”
Those changes would begin Friday, “if needed.”
The statement to Global News from the corporation came after the Canadian Union of Postal Workers (CUPW) said in a news release that they had received lockout notices from Canada Post, with said action set to begin at 8 a.m. Eastern on Friday.
CUPW said it had received the notices eight hours after it had issued its 72-hour strike notice, though the union did not say if workers would walk off the job.
“Our goal has always been to reach negotiated collective agreements that support the long-term success of our public post office, while addressing the real issues our members face daily,” Jan Simpson, CUPW national president, said in a statement. “Canada Post has the ability to make that happen without any job action, but it needs to come to the bargaining table and resolve both new and longstanding issues.”
For almost a year, CUPW has been bargaining new contracts for the urban operations unit and the rural and suburban mail carriers (RSMC) unit.
“Despite our best efforts, the parties remain far apart on many issues,” the union said.
According to CUPW, the sticking points that remain unresolved include wage increases, adding paid medical days to personal days, increased coverage for health specialists, fertility treatment, gender-affirming care, vision care and precautionary cessation of work for pregnant and breastfeeding employees.
Wycliffe Oduor, president of CUPW’s Calgary Local 701 chapter, told Global News that this strike notice could help expedite the unresolved issues that are on the table.
Canada Post also confirmed in a news release Tuesday that it had received strike notices for CUPW’s urban operations unit and the RSMC unit.
“The notices indicate that CUPW will be in a legal position to begin strike activity on November 15 at 12:01 a.m. ET,” Canada Post said.
The Crown corporation said that the union has been notified that if new agreements are not reached, the current collective agreements will no longer apply as of Friday.
Lisa Liu, a Canada Post spokesperson, told Global News last week that the threat of a strike ahead of the busy holiday season has already had a “serious effect” on business as customers look for other delivery options, putting further financial strain on the company.
In its latest offer to CUPW, Canada Post proposed higher annual wage increases amounting to 11.5 per cent over four years and protections for workers’ pensions. The new proposal also included enhanced leave entitlements and job security provisions.
The union has been in a legal strike position since Nov. 3 after a cooling-off period in contract talks ended the day before.
On Nov. 5, CUPW provided Canada Post with its second offers for urban and rural members, which included compounded wage increases of 23.79 per cent over four years.
CUPW’s offers also included previously made demands for improved benefits and 10 paid medical days for its members, as well as issues around contracting in work and maximizing and maintaining eight-hour routes.
Labour Minister Steven MacKinnon, who imposed binding arbitration Tuesday to end work stoppages at Canada’s largest ports in British Columbia and Quebec, said the federal government is providing mediation support to both parties in the Canada Post labour dispute and at this stage, they remain hopeful a deal can be reached through collective bargaining.
“We are hoping to achieve a deal at the table,” MacKinnon told reporters.
“The issues at hand in the Canada Post negotiations are substantial. They’re significant. There’s a lot of work to do.… We will make every effort possible to keep them at the table and keep them talking, and we hope to achieve a negotiated settlement there.”
'Big concern for retailers'
Canada Post said that the looming job action could impact millions of Canadians and businesses who rely on their service.
“In the event of a labour disruption, the Corporation will work to minimize service disruptions, but customers may experience delays,” the company said in its statement.
“Shutting down facilities or regions with rotating strikes can cause immediate and prolonged ripple effects throughout the network.”
On previous occasions, Canada Post workers have done rotating strikes so there is minimal impact on customers. There is also the option for a full-out strike, as well as Canada Post locking out workers and closing the business down completely.
The potential strike has retailers, especially smaller companies, worried ahead of the busy holiday season.
The Retail Council of Canada had earlier warned that even the potential strike at Canada Post, alongside a lockout at British Columbia’s ports and partial strike at the Port of Montreal, is posing a “triple threat” to both Canadian businesses and customers.
“Canada Post still remains a big concern for retailers,” Matt Poirier, vice-president of federal government relations for the Retail Council of Canada, told Global News on Tuesday.
“This is the busiest time of the year and a lot of Canadians do online shopping and rely on Canada Post to get those goods to them in time for the holidays … So, this is a big concern for us and we’re watching it very closely, but it doesn’t seem to be moving in the right direction.”
Poirier said companies can turn to alternative mailing companies, but those can be more expensive.
“It’s a big problem for small retailers, and that’s why we need to avoid a strike or any sort of job action at Canada Post.”
— with files from Global News’ Michael King and Sean Previl