OTTAWA — The union representing Canada Post workers is urging the federal government to reverse significant changes to the postal service's mandate. This call comes as mail carriers across the country have begun striking.
On Thursday, the government announced that Canada Post would end daily door-to-door delivery for millions of Canadians and close some post offices. This announcement has altered the dynamics of ongoing negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW).
Jon Hamilton, a spokesperson for Canada Post, confirmed that the announcement by Procurement Minister Joël Lightbound required the Crown corporation to revise its proposals, which were set to be presented to CUPW on Friday.
CUPW negotiator Jim Gallant expressed surprise at the extent of the changes, stating, "We’re not saying that Canada Post doesn’t have troubles. We’re just saying that these are extreme ways to fix things — some things that don’t need to be fixed."
The measures announced include expanding community mailboxes to four million more addresses and lifting a moratorium on closing certain rural post offices. Lightbound indicated that these changes are a response to a revenue crisis at Canada Post, which has been affected by a decline in letter mail and a limited share of the parcel market.
CUPW has labeled the government's changes a "direct attack" on the future of the postal service. The union is anticipating a government review of the postal service's mandate next month. Gallant noted that the government has instead adopted recommendations from William Kaplan, who led an inquiry into the labor dispute and Canada Post's financial situation. The inquiry concluded that the postal service is effectively insolvent.
Gallant emphasized that the goal of the nationwide strike is to garner public support for a comprehensive mandate review that includes public testimony. He stated, "We need the government to be honest with the Canadian public and walk this back."
He also questioned Canada Post's reported daily losses of $10 million, suggesting that the postal service has relied on federal bailouts in recent years. Hamilton acknowledged a "significant gap" remains between Canada Post and the union, but indicated that new offers would reflect the government's changes and aim to stabilize the postal service while reducing taxpayer burden.
Negotiations between Canada Post and CUPW have been ongoing for nearly two years, with no agreement reached on wages or structural reforms. CUPW is seeking a 19 percent wage increase over four years, while Canada Post has proposed a 13 percent increase. Hamilton stated that CUPW's latest proposals would add $2.8 billion in costs over the agreement's duration, which he deemed "not on the table."
In the House of Commons, discussions about Canada Post's situation intensified. Bloc Québécois MP Alexis Deschênes criticized the government's intervention, saying it was akin to "dropping an atomic bomb" on negotiations. Government House leader Steve MacKinnon defended the government's actions, stating, "We can’t continue to have millions, billions of losses from Canada Post."
NDP MP Jenny Kwan suggested that the government should invest in Canada Post to enhance its services and competitiveness, proposing that its extensive network could be utilized for electric vehicle charging stations or community hubs in rural areas.
Hamilton indicated that Canada Post must become smaller to survive, noting that expanding community mailboxes would reduce the need for postal workers. He mentioned that the corporation could "lean into attrition" to achieve cost savings, with an estimated 14,000 workers expected to retire in the next five years.
Gallant called for a reduction in executive salaries at Canada Post, arguing that management lacks familiarity with the business compared to mail carriers. He stated, "We need people on the other side that actually know what we do and know how to fix this."
The union's strike actions, which began in May, have escalated to include a ban on overtime and the delivery of flyers. During the strike, Canada Post has suspended most operations, with exceptions for delivering pension checks and social assistance payments. No new mail will be accepted, and items already in the system will be held until the labor disruption concludes.