Canada Post issued a 72-hour lockout notice to its 50,000 employees Tuesday morning – meaning a mail stoppage could occur as early as Friday.
In a news release, the Crown corporation blamed "the uncertainty caused by the prolonged negotiations and union's strike mandate," for forcing its hand.
Customers fearing their parcels and letters would get stuck in the system have turned to other carriers over the past week, causing "a negative and escalating impact on the postal service."
While Purolator – which is owned by Canada Post – has temporarily suspended its service guarantees and new account registration due to "a significant increase in shipment volumes resulting from a potential Canada Post labour disruption," the number of parcels arriving at Canada Post processing plants no longer justifies an entire processing shift and lettermail is down 50 per cent.
E-commerce volume declined by at least 75 per cent, as nearly all of the postal service's ecommerce customers have migrated to other mail carriers in anticipation of a disruption to the service according to Canada Post.
"The Corporation must now respond to the rapidly deteriorating volumes and the financial impact to the business," reads the release.
UPS has also suspended service guarantees for shipments delivered in Canada to ensure that existing customers needs are met in the event of a Canada Post labour disruption. FedEx spokesperson Shawna Rossi said some domestic services may be adjusted to accommodate increased volume.
The Canadian Union of Postal Workers said it's the corporation's own fault it is receiving less business. Canada Post has been creating uncertainty by warning the public to avoid the post office and releasing deadlines to ensure that mail and parcels arrived before July 2 – the day either party was allowed to issue a 72-hour notice of a strike or lockout.
The lockout notice doesn't necessarily mean that mail delivery will stop on Friday, but the current collective agreement will. Employees will continue to receive regular pay, but will lose many of their benefits, and Canada Post will have the authority to adjust staffing levels according to its needs.
CUPW president Mike Palecek said Tuesday that the move was an attempt to "starve us into submission." He said Canada Post failed to negotiate fairly with the union and the lockout notice is meant to impose "steep concessions" on its workers.
The two parties have been negotiating the terms of a new collective bargaining agreement since November. At the crux of the impasse is pay equity for the mainly female rural and suburban mail carriers, who make as much as 28 per cent less than urban carriers, and a change to new employee pensions.
Canada Post wants to move away from the current defined benefit pension plan, which ensures a lifetime retirement income, to a defined contribution plan, where it is not certain how long pension income will last.
The union says this will create a two-tier system. "They wanted us to sell out the next generation of Canadian Postal workers for a quick deal," said Palecek.
Despite receiving overwhelming approval to strike last week, CUPW stayed at the table to negotiate a better deal.
On Monday, Canada Post rejected the union's counter-offer saying the "more than $1 billion in demands" were unaffordable. The company informed CUPW that the offer presented on June 25 was final.
The last Canada Post lockout lasted three weeks after a series of rotating strikes, until the Conservative government forced mail carriers back to work. The Ontario Superior Court has since ruled the 2011 back-to-work legislation unconstitutional.
In the event of a full labour disruption, Old Age Security, Canada Pension Plan, Working Income Tax Benefit and Canada Child Benefit cheques will continue to be delivered.
The Alberta government released its contingency plan last week. Full details can be found here: alberta.ca/canada-post-service-disruption.
Gazette plans
The St. Albert Gazette will still be available in the event of a mail disruption.
St. Albert, Morinville, and Cardiff will not be affected by a strike or lockout, since these areas are covered by door-to-door delivery by Gazette carriers.
However there are about 4,300 subscribers in Sturgeon County who receive the newspaper through Canada Post. If mail delivery is suspended, news boxes will be placed at strategic locations. A map will be available in ads and on the Gazette website.
There is a small number of national subscribers who won't be able to receive the paper if there is a disruption. An e-edition of the Gazette is available on our website.
