Canada Post says the latest offer from the union representing its striking workers is “unaffordable and unsustainable” as a nationwide postal disruption nears the one-month mark.
In a statement on Wednesday, Canada Post said that upon a careful review of the most recent proposals from the Canadian Union of Postal Workers (CUPW), meeting the union’s demands would cost the company more than $3 billion over four years.
The Crown corporation added that CUPW’s latest offer is “far from where we need to be” and is “widening the gap in negotiations.”
On Tuesday, the union refuted Canada Post’s claims that the union’s latest offer “takes major steps backwards” in the labour dispute.
“In our most recent proposals to Canada Post, the Union addressed many issues the Employer had first brought to the bargaining table,” CUPW said in a published statement.
“Far from trying to ‘widen the gap in negotiations,’ the Union’s intention is to help the parties come to negotiated agreements. CUPW wants nothing more than for its members to have good collective agreements, with their rights protected.”
The strike, which started on Nov. 15, has reached Day 27 with no signs of ending.
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The postal shutdown is costing small businesses millions each day, the Canadian Federation of Independent Business says, and impacting Canadians across the country.
On Monday, Canada Post suggested that there would be no quick end to the strike.
“We don’t want to provide false hope to impacted employees, small businesses, charities and northern communities that were hoping for a speedy resolution,” it said.
“In the last few weeks, Canada Post has made several important moves to close the gap and reach negotiated agreements, but the union has reverted to their previous positions or increased their demands.”
Higher wages, better medical benefits and changes to the postal service’s use of temporary workers are at the heart of the union’s demands at the bargaining table.
In its latest offers, CUPW said it addressed several issues, including overtime, relief complement, peak period and the conversion of permanent relief employees to permanent flex employees.
Canada Post said that the union has proposed wage increases of 19 per cent over four years, including a nine per cent hike in the first year. That is a decrease from CUPW’s earlier wage proposal asking for a 22 per cent total increase or 23.7 per cent compounded.
On the other hand, Canada Post is offering wage increases of 11.5 per cent over four years.
“While we recognize that CUPW has moved on its wage demands, the union’s proposal remains well beyond what the Corporation can afford, given its significant losses and deteriorating financial position,” Canada Post said.
Canada Post has proposed creating new staffing positions to support weekend delivery as well as a dynamic routing model, but the union has not jumped on board.
Despite the impasse in negotiations, both sides say they remain committed to reaching negotiated agreements to end the strike.
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