Canada Post says it’s made significant concessions in a new contract offer to its workers, but the local postal union leader for Portage and Neepawa says concerns remain, especially around how new hires are treated.
Local 802 president outlines key issues
David McLeod, president of Local 802 of the Canadian Union of Postal Workers (CUPW), says the union is currently reviewing the latest global offer from the Crown corporation.
"To my understanding, our negotiating committee is looking over that offer as we speak," he notes. "My suspicions are that we could possibly get an extension to the contract for a couple of weeks just to allow them to look over the contract for a few extra days."
He adds the union’s biggest concern is a proposed two-tier employment system.
"The corporation is kind of trying to have a 2-tiered system where new hires basically get less than current employees," he says. "When you're hired, you're starting at a lower wage. Your benefits are less; your job security is less."
McLeod continues, "The Union's trying to fight and say, well, they're doing the same work they should have the same benefits, same pay. I know that's a major one, different pension system for new hires."
He mentions the union is also seeking a modest wage increase.
"It's mainly the big sticking point. I mean obviously we're looking for a bit of a raise just to keep up with inflation, but certainly nothing astronomical," he says.
Canada Post highlights wage increases, benefit protections
In a release issued May 21, Canada Post states that the new offer includes wage increases of 6.0 per cent in year one, followed by 3.0, 2.0, and 2.0 per cent increases over the next three years, amounting to a compounded raise of 13.59 per cent.
The company also says current employees would retain their defined benefit pension plans, existing health and post-retirement benefits, vacation entitlements of up to seven weeks, and the cost-of-living allowance.
Canada Post notes it has withdrawn some of its earlier proposals, including a new health benefits plan and a defined contribution pension for new hires. It also proposes part-time positions with benefits and guaranteed hours to increase weekend delivery flexibility.
The company is proposing Dynamic Routing, used by major private couriers, as a pilot in 10 facilities to optimize routes daily and improve delivery consistency.
National implications loom large
Strike notices were issued May 19, and job action is expected to begin at 12:00 a.m. on Friday, May 23, unless an agreement is reached.
The existing collective agreements expires Thursday, May 22.
Canada Post handles more than two billion letters and 300 million parcels annually. A full work stoppage could impact businesses and residents nationwide and worsen the company’s already challenging financial position.
The federal government has already committed more than a billion dollars in repayable support to the Crown corporation to keep it afloat after several consecutive years of losses.
Meanwhile, a recent independent report has called for structural reforms at Canada Post, including the gradual end of daily door-to-door mail delivery for households.
Strike not preferred, says local union
McLeod says his members want to avoid walking off the job.
"My hope is that cooler heads prevail, and they just figure this out," he remarks.
He continues, "Of our 30 people, we're kind of a small [part] of the 55,000 that are in CUPW. None of the people in our local want to strike. We just want to keep the mail moving and keep our paychecks coming in."
McLeod adds that if a strike does happen, their offices would close.
CUPW Local 802 represents postal workers in Portage and Neepawa.