Last week the federal agency responsible for mail delivery in Canada announced there was no progress in contract talks with the 50,000 strong Canadian Union of Postal Workers (CUPW). It issued a 72-hour lock-out notice and could lock workers out as of last Friday. This would have meant almost all mail delivery would cease in Canada.
Canada Post said the lock-out threat was in response to the stalemate in talks, and the union’s own position of potential strike action.
However, Canada Post later said a lock-out would be delayed until at least today, Monday. Then over the weekend the agency said there had been some progress in negotiations
In a statement on Sunday the agency said, “Accordingly the Corporation has withdrawn its 72-hour notice As a result, there will not be a lockout, which will allow both parties to focus their efforts on serious negotiations. We are also expecting the union to honour their repeated public statements that they have no plans to issue a strike notice. Assurance from both parties that the postal system will remain open for business while we negotiate will provide the certainty that Canadians and our employees are looking for”.
However, after seven months of negotiations including 30 days with federal mediators, the two sides remain far apart on wages and pensions.
In addition to salary increases, the union is also seeking an hourly wage for rural and suburban postal workers as is the case for urban letter carriers. The suburban and rural delivery personnel are now paid by the number of items they deliver.
Canada post wants to change the pension plan for any newly hired employee from the current ‘defined benefit’ plan to a ‘defined contribution’ plan. This reduces costs for employers, and shifts responsibility for future payouts on to employees who are no longer guaranteed a set payment amount in retirement.
Other federal unions are closely watching the pension debate as this could affect their own future negotiations with the government.
additional information – sources
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