Question Period Note: Canada Post Labour Negotiations

Canada Post’s two collective agreements with the Canadian Union of Postal Workers expired on December 31, 2023, (Rural and Suburban Mail Carriers) and January 31, 2024 (Urban Postal Operations).

• The government is aware that this labour action will have a significant and immediate impact on millions of Canadians, small businesses and charities who count on Canada Post during the busy holiday season
  • In particular, we understand the largest impact will be on remote and Northern regions that rely on Canada Post
  • We encourage both sides to continue working towards achieving negotiated settlements

If pressed on back to work legislation:

• The bargaining process is in the hands of Canada Post and the union
• As stated by my colleague, the Minister of Labour, an agreement at the negotiating table is the only option as the government is not currently considering binding arbitration
• Minister MacKinnon has advised that as soon as productive bargaining can begin anew, the special mediator will re-engage the parties

If pressed on layoffs:

• The labour action has had a significant negative impact on Canada Post’s volumes and finances. Therefore, Canada Post has taken steps to temporarily adjust staffing levels to reflect operational realities
• Should an agreement be reached, or should the union decide to shift to rotating strikes, Canada Post remains ready to resume operations

If pressed on impacts to Receiver General cheques:

• Canada Post and Canadian Union of Postal Workers have agreements in place to allow for the continued delivery of Old Age Security, Canada Pension Plan, Veterans Affairs Pension Plan (in December), and Canada Child Tax Benefit paper cheques during a labour disruption

Canada Post and the Canadian Union of Postal Workers have been negotiating since November 2023 to reach new collective agreements.

Canada Post has proposed wage increases (11.5% over 4 years), added paid leave, and preserved employee pensions and jobs. Plans include seven-day parcel delivery and competitive pricing.

During the national strike, no mail or parcels will be processed or delivered, some post offices will close, and service guarantees will be affected. Items in the network will be secured and delivered on a first-in, first-out basis once operations resume, but delays are expected even after the strike ends.

Separate Sort from Delivery

Separate Sort from Delivery, a key issue in Canadian Union of Postal Workers negotiations, is a delivery model introduced by Canada Post in 2017. It separates mail sortation from delivery, with some employees sorting mail for multiple routes and others focused solely on delivery. Now used in over 70 facilities nationwide, Separate Sort from Delivery has not affected customer delivery or caused job losses. Employees are encouraged to share local feedback to address any concerns.

• Canada Post and Canadian Union of Postal Workers have been negotiating since November 2023 to reach new collective agreements
  • As of November 27, the special mediator temporarily suspended mediation as the parties remain too far apart. Canada Post remains committed to the bargaining process