Following marathon bargaining sessions over the past week, it now appears all but certain that Canada Post and the Canadian Union of Postal Workers have avoided a possible service disruption that has loomed for months.
The two sides reached a tentative two-year agreement late Tuesday night that–if accepted by the union–will see mail service across the country carry on as usual.
Labour Minister MaryAnn Mihychuk said no details of the agreement would be released until employees ratify the deal.
Mihychuk held meetings with both sides and appointed a special mediator last weekend when the talks reached a crisis point after nine months of talks appeared fruitless.
The major sticking points included keeping defined benefit pension plans for newer workers and addressing pay equity issues between rural and urban letter carriers.
The union had raised concerns around staffing levels and mail routes that it said took too long to cover, often requiring workers to put in overtime against their will.
If no deal was reached, employees said they would refuse to work overtime as an initial pressure tactic.
For its part, Canada Post said it faced “complex” issues around declining letter mail volumes and rising pension costs.
Canada Post first threatened and then renounced locking out the workers, action it took when contract talks stalled in 2011.
A Canada Post spokesman says the two-year-deal will provide more time to address some of the issues it faces.
The normal length of an agreement is four years.
With CP and CBC files.
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