Canada Post presented new global offers to the Canadian Union of Postal Workers (CUPW) that demonstrate the Corporation’s commitment to reaching negotiated agreements, without any labour disruption.
The new proposals protect and enhance what’s important to CUPW-represented employees – including offering higher wage increases – while responding to the challenges facing the country’s postal service. These updated global offers come as the cooling-off period is set to expire November 2, and after CUPW announced last week it has received a strike mandate from its members for both the Urban and RSMC (Rural and Suburban Mail Carriers) bargaining units.
Both parties must urgently focus their energies on resolving outstanding issues to reach negotiated agreements. A labour disruption would have significant consequences for the millions of Canadians who rely on Canada Post while deepening the company’s already serious financial situation, as customers move their holiday shipments to other carriers. For this reason, the offers are conditional on reaching negotiated agreements without a labour disruption.
The negotiations come at a critical juncture for Canada Post as the Corporation continues to grapple with the significant financial and operational challenges of delivering in today’s highly competitive parcel delivery market. In the first six months of 2024, Canada Post recorded a loss from operations of $490 million. Since 2018, Canada Post has lost more than $3 billion.
Higher wage increases included in Canada Post’s new proposals
The new offers enhance and protect key items for CUPW-represented employees, within the company’s financial constraints, while making necessary changes to meet the needs of Canadians. The proposals include:
- Annual wage increases amounting to 11.5% over four years (11.97% compounded).
- Protecting the defined benefit pension for current employees, as well as their job security and health benefits.
- Continued wage protection against unforeseen inflation.
- Improved leave entitlements for current employees.
- Transitioning to an hourly rate of pay for RSMC employees.
- Supporting CUPW’s proposal for a future merger of the RSMC and Urban bargaining units.
With these new offers, Canada Post has also proposed to submit several items to binding-interest arbitration. The proposal would allow a neutral third party to decide a reasonable path forward on key items that are important to both sides.
To better serve Canadians in today’s competitive parcel delivery market, the Corporation has also proposed necessary changes to create a more flexible and affordable delivery model and provide parcel delivery seven days a week.
(Canada Post)
