Jobs Minister Patty Hajdu has called on Canada Post to swiftly present a new offer to the striking postal workers’ union. The Canadian Union of Postal Workers (CUPW) initiated strike action following Ottawa’s announcement of extensive operational changes at the Crown corporation to address its financial challenges.
These changes entail discontinuing daily mail delivery, shutting down select rural post offices, and transitioning most Canadian households to community mailboxes, which the union perceives as a direct assault on its members. In an interview with The Canadian Press, Hajdu suggested that federal intervention to resolve the ongoing strike remains a possibility. However, she emphasized the importance of Canada Post promptly introducing a revised offer while urging the union to seriously consider any proposals put forth.
Hajdu stressed that after nearly two years of negotiations, both the union and the corporation must collaborate to chart a new path for the struggling postal service. She emphasized the urgency for Canada Post and the union to work together in transforming the organization into a sustainable Crown corporation.
Canada Post had been set to present a new offer on Friday but is now reevaluating its proposal in light of the government’s recent directives. According to Canada Post spokesperson Jon Hamilton, there exists a significant disparity between the corporation and the union. The revised offer will align with the government’s reforms aimed at stabilizing the postal service and alleviating the financial strain on taxpayers.
The financial predicament of Canada Post is dire, with reported daily losses exceeding $10 million during the summer due to ongoing labor uncertainties. The company has relied on federal assistance to remain operational in recent years. An industrial inquiry commission report earlier this year indicated that the Crown corporation was essentially insolvent and recommended various measures to sustain its operations, which the federal government has now embraced.
CUPW negotiator Jim Gallant acknowledged Canada Post’s financial challenges but criticized the government’s proposed solutions as extreme. The union’s objective in the nationwide strike is to compel the government to reconsider its overhaul of Canada Post and conduct a public mandate review.
The Canadian Federation of Independent Business has warned about the significant impact the strike will have on small businesses dependent on Canada Post services. Despite this, the organization has advocated for the government to proceed with the planned reforms.
The situation remains tense as both sides navigate the complexities of the strike, with stakeholders closely watching for developments that could shape the future of Canada Post and its workforce.