Canada Post shut down, suspends operations across country difficult, Crown

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Canada Post shut down, suspends operations across country


OTTAWA — Canada Post has shut down its operations nationwide after nearly two weeks of rotating strikes and failed negotiations with its union.


The Crown corporation says that the Canadian Union of Postal Workers' rotating strikes have led to estimated losses of $100 million. About 50,000 employees have been locked out, Canada Post spokeswoman Anick Losier told Postmedia News Tuesday night.


"It was a difficult decision but it's the best one right now. We don't want to become a burden on taxpayers so we needed to do this today to be able to be self-sufficient," she said.


"We're still really far apart on some issues and we haven't seen any real progress at the table."


Only 23 postal workers from Carbonear, N.L., Sioux Lookout, Ont., and Salmon Arm, B.C., were slated to begin walkouts Tuesday night at 11 p.m. ET, a day after the rotating strike hit two of the country's largest urban centres, Toronto and Montreal.


On Monday night, 15,000 workers walked off the job at 11:30 p.m. ET for 24 hours leading to "piles of undelivered mail," according to CUPW.


Union representatives in Toronto and Montreal accused Canada Post management of "penalizing" union members for using their right to strike after the Crown corporation reduced hours of work and locked out employees.


"We believe that a lockout is the best way to bring a timely resolution to this impasse and force the union to seriously consider proposals that address the declining mail volumes and the $3.2-billion pension deficit," said a Canada Post news release.


Two CUPW members told Postmedia News early Wednesday morning that the union had no comment at the time but would issue a statement later in the day.


After seven months of failed negotiations, the union called a strike two weeks ago. It was the first in 14 years.


Union negotiators have asked for a wage bump of 3.3 per cent in the first year, followed by 2.75 per cent in the subsequent years of a four-year contract.


Changing the sick leave plan has also caused contention between the two sides; Canada Post is fighting for a short term disability plan to replace banking sick days.

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The Crown corporation's officials offered a 1.9 per cent increase a year, with wages starting at $18 an hour for new hires and increases capping at $26 for new and existing employees. Employees also receive a benefit pension plan and up to seven weeks vacation despite what Canada Post says is a 17 per cent decline in letter mail volume per address since 2006.


The union says that employees would only receive seven weeks vacation after 28 years of service.


"After seven months of negotiations, Canada Post continues to demand major concessions, including unsafe work methods, a 22 per cent wage reduction for new hires and the elimination of a sick leave plan that members have had for over 40 years," CUPW national president Denis Lemelin said in a statement issued at the end of May.


Only small communities should receive mail while employees are locked out, Losier said.


Federal Labour Minister Lisa Raitt told CBC News earlier Tuesday she was concerned that people won't bring their business back to Canada Post once the negotiations are finally settled because the rolling strikes have turned the public away.


"I can tell you I'm extremely disappointed with the two parties not being able to reach a deal," Raitt said, after she said she would table legislation in the House of Commons to force Air Canada employees back to work just after their strike started. "They too have an obligation to Canadians to get this done."


Within the last week, the rolling strike hit Winnipeg, Hamilton, Moncton, Victoria, Calgary and Edmonton along with several other cities


Canadian Union of Postal workers Gordie Grieg, Andrea Martin and Mark Price picket at the Canada Post retail outlet on Yates Street in Victoria, B.C. June 14, 2011.



Canada Post has shut down its operations nationwide after nearly two weeks of rotating strikes and failed negotiations with its union.