The threat of a work stoppage at Canada Post appears to have receded slightly–at least for the moment.
The crown corporation backtracked on its threat to lock out its workers on Monday, saying it hopes the Canadian Union of Postal Workers will not issue a strike notice
Following 60 days of conciliation talks and more than 30 days with federal mediators, the two sides remain divided on two major issues: wages and pensions.
The 50,000-member union wants rural and suburban mail carriers–like their urban counterparts–to be paid by the hour and not by how many packages they deliver.
Meanwhile, Canada Post wants to change pension plans for new employees, moving them to a defined contribution plan rather than a defined benefit plan.
Canada Post says that plan reduces costs and shifts the risk for future payouts onto employees, who are no longer guaranteed a set return in retirement.
How the pension negotiations play out is being closely watched by other public sector unions.
If Canada Post’s pension proposal is adopted, it could signal the direction the government wants to take with other unions.
Bottom line: mail delivery in Canada continues–for now.
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