The Canadian Union of Postal Workers (CUPW) has requested that Canada Post send their ongoing labour dispute to binding arbitration, but the corporation has rejected this proposal.
CUPW’s Position
In a statement issued on Saturday, CUPW invited Canada Post to a fair and final arbitration process. The union represents approximately 55,000 workers who have been without a new collective agreement since June 2022.
Mike Palecek, national president of CUPW, stated:
"We believe that this is the best way forward for both parties. We are willing to work with Canada Post to find a solution that works for everyone."
Canada Post’s Response
In response on Sunday, Canada Post dismissed the proposal and urged CUPW to accept its "final offers" presented earlier that week. Jean-Pierre Dionne Blanchet, vice-president of human resources at Canada Post, emphasized:
"We want to restore stability within our organization. We believe these offers represent reasonable improvements while also recognizing our need for cost savings."
Canada Post’s Proposals
Canada Post’s proposals include:
- An end to compulsory overtime
- Up-to-$1,000 signing bonuses
- No changes affecting staffing levels or hours worked by full-time employees
- No change in pension benefits or health insurance plans
- A modest increase (2% annually) in vacation time
However, CUPW has rejected these proposals, seeking better wages and working conditions. The union has stated it will continue its strike action until an agreement is reached.
Concerns Over Binding Arbitration
Canada Post argues that binding arbitration would complicate and delay resolution, potentially lasting over a year and imposing significant financial challenges. Dionne Blanchet remarked:
"Our goal is not just about getting back into balance financially but restoring stability within our organization."
He further stated that previous agreements reached through conciliation/mediation have not been successful:
"It will make things worse rather than better. In light of your rejection of all previous agreements reached through conciliation/mediation, and given we are at an impasse again after several weeks since presenting them, we invite you now to engage with us immediately via Fair Final Offer Arbitration (FFOA). This means both parties agree beforehand that whatever outcome results from FFOA shall be FINAL AND BINDING upon both parties. The alternative is further prolonged uncertainty which can only serve neither party well."
Ongoing Strike and Impact
CUPW has been on strike since October 2022, addressing issues such as wages, working conditions, and job security. The dispute is affecting mail delivery services across much of Western Canada and some areas in Ontario, where rotating strikes were held earlier this month.
In addition to rejecting binding arbitration, CUPW criticized Canada Post for not presenting any new information during negotiations, despite having access to all relevant data throughout the bargaining process. Palecek noted:
"The employer chose not to provide any new information during bargaining despite having access to all relevant data throughout bargaining."
This lack of transparency complicates negotiations:
"Without knowing what they’re basing their numbers on, it’s hard for us to negotiate effectively."
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