Canada Post has presented a revised offer to the union representing 55,000 striking postal workers, removing the signing bonus due to its financial strain. The latest proposal maintains various benefits, including a 13.59% wage increase over four years, health and retirement benefits, and up to seven weeks of vacation. The ongoing negotiations have been ongoing for over a year and a half, with workers resuming strikes in response to significant changes announced by the government.
In response to the financial challenges faced by Canada Post, the government has instructed the company to implement various changes to stabilize its finances. These changes include ending home delivery, transitioning remaining addresses to community mailboxes, adjusting mail delivery methods for cost savings, and lifting the moratorium on closing rural post offices. The plan aims to save costs, address declining mail volumes, and ensure the survival of the postal service.
To facilitate the transformation, Canada Post has proposed voluntary buyouts with extended pay for employees and stated that layoffs would be a last resort. The corporation emphasized the importance of reducing the workforce through attrition and departure incentives before considering layoffs. Additionally, the offer includes provisions for laid-off employees to retain certain rights and benefits.
The proposed changes align with recommendations from an Industrial Inquiry Commission report and aim to address the evolving postal landscape. Despite the potential benefits, the union has expressed outrage and resumed strikes in response to the announced reforms. Canada Post highlighted the need for sustainable practices and the challenges posed by maintaining unviable post offices, emphasizing the importance of balancing operational efficiency with employee welfare and service quality.