Canada Post and the union representing its 55,000 workers returned to the bargaining table on Thursday. This development comes just a day after the federal government urged both parties to resume negotiations amid rising concerns that the ongoing dispute could lead to arbitration.

The Canadian Union of Postal Workers (CUPW) announced its decision to re-engage in talks at the request of federal jobs minister Patty Hajdu. In a statement, CUPW emphasized its commitment to negotiating in good faith. "CUPW enters talks in good faith and expects Canada Post to do the same, with real proposals that address wages, working conditions, and good jobs," the union stated. They also expressed their dedication to achieving collective agreements that reflect the value and commitment of postal workers while expanding services.

As of Thursday evening, a spokesperson for Canada Post confirmed that discussions were ongoing in Ottawa but refrained from commenting on the specifics of the negotiations. Earlier this week, Hajdu had urged both sides to reach a contract agreement but also suggested they prepare for the possibility of binding arbitration.

On Wednesday, Hajdu stated on social media that a negotiated settlement would be preferable. However, she noted that if negotiations fail, arbitration could be a necessary step to resolve the dispute, which had previously resulted in a 32-day strike last winter.

The union's recent actions include filing a complaint with the Canada Industrial Relations Board (CIRB) on Tuesday. The complaint accuses Canada Post of attempting to bypass the union by negotiating directly with workers and allegedly trying to undermine the union's reputation. The CUPW is seeking damages and an order for Canada Post to cease its alleged interference.

"The Union is asking the CIRB to order Canada Post to stop this interference, level the playing field by giving the Union opportunity to rebut the employer’s misinformation on their platforms and order damages to the Union and members," CUPW stated.

In response, Canada Post asserted its right to communicate with employees and plans to contest the union's allegations. "We reject the allegations made by CUPW in their entirety and we will respond in the proper forum," Canada Post said. They emphasized the need for both parties to focus on finding a fair resolution to stabilize the postal service for employees and customers.

Labour law professor David J. Doorey suggested that the union's complaint could facilitate a move toward binding arbitration. "The complaint could further CUPW’s goal of getting the dispute referred to arbitration," he explained. He noted that if negotiations deteriorate and both parties accuse each other of unlawful conduct, the likelihood of government intervention to order arbitration increases.

While the law prohibits employers from negotiating directly with unionized workers, Doorey indicated that the situation can be complex. "If that has happened, it is a pretty straightforward violation of labour laws. However, it gets more fuzzy if the employer claims it is just repeating information already discussed with the union. So it would take some time to sort out those facts."

Last weekend, Canada Post rejected the union's request for binding arbitration, arguing that it would prolong the process and worsen their financial difficulties. On May 28, Canada Post presented what it termed its "final" contract offer, which includes a 13 percent wage increase over four years and a $1,000 signing bonus. Two days later, Canada Post requested Hajdu to order a vote on this offer, a move that CUPW criticized.

CUPW members have been in a legal strike position since May 23, but their actions have been limited to a ban on overtime work. A report from mediator William Kaplan indicated that Canada Post is effectively insolvent and suggested various operational changes, including the use of community mailboxes and the elimination of home delivery for non-parcel items. Kaplan's report also recommended expanding parcel delivery to seven days a week, utilizing part-time and temporary employees.