Sunday, December 14, 2025
ADVT 
National

Canada Post rejects union terms for arbitration as both sides enter bitter stalemate

Darpan News Desk The Canadian Press, 10 Jun, 2025 11:38 AM
  • Canada Post rejects union terms for arbitration as both sides enter bitter stalemate

A government push to steer Canada Post and the union representing 55,000 mail workers toward common ground hit a big pothole Monday.

As an increasingly acrimonious impasse drags on, Canada Post rejected a framework put forward by the union for a binding arbitration process, which Jobs Minister Patty Hajdu asked the parties to work toward just five days earlier.

Canada Post spokeswoman Lisa Liu said the Canadian Union of Postal Workers has effectively refused to take heed of a federally commissioned report that called for major reforms to the 158-year-old institution, including more flexible routes and part-time weekend positions with similar pay rates and benefits.

"The union’s refusal to recognize the IIC (industrial inquiry commission) report and its recommendations in their proposed terms of reference for arbitration is unacceptable," she said in a statement.

The Canadian Union of Postal Workers said its goal remains a return to the bargaining table to hammer out a new contract.

"However, Canada Post’s actions suggest it does not want to negotiate. It wants to rewrite our agreements — and is seeking to use government interference to further its goals," the union said in a release Monday.

Canada Post questioned that claim, noting that the union has not responded to its latest offer from May 28.

The two sides exchanged some information on Thursday and Friday through federal mediators, but have had little contact since, the Crown corporation added.

Meanwhile, the union called on members to sign a letter to the minister opposing the prospect of a forced vote on Canada Post's "final offers."

The letter says that such a move — requested by Canada Post — would amount to government interference, tip the scales in the employer's favour and potentially sow division in the ranks of employees.

"The issues will remain contentious among some, most or all of the membership, depending upon how the vote goes," the Sunday missive states, adding that resulting resentment would undermine labour peace.

Union president Jan Simpson hinted at possible rifts within the membership last week, saying in an update that "although tensions are high, let’s not forget our fight is with the employer, not one another."

Canada Post's last proposal includes an end to compulsory overtime, signing bonuses of between $500 and $1,000 and cost-of-living payments that are triggered at a lower inflation threshold.

Management’s earlier offer of a nearly 14 per cent cumulative wage hike over four years remains unchanged, as does a plan to hire part-time staff for weekend parcel delivery — a major sticking point in the talks.

Last Wednesday, the jobs minister called on Canada Post and the union to return to the bargaining table and hash out terms for binding arbitration, with the two sides acres apart on key issues.

Hajdu also asked the Crown corporation and union to continue to work toward a deal outside of that process in a dual-track approach to reach a new contract. Progress along both tracks is now stalled.

The union backed down from the threat of a strike last month, but imposed an ongoing overtime ban instead on May 23.

A strike would mark the union's second work stoppage in six months, after mail carriers went on strike for 32 days at the height of the pre-holiday shipping season in November and December.

That action was part of the same contract negotiations at issue now.

Picture Courtesy: THE CANADIAN PRESS/Darryl Dyck

MORE National ARTICLES

BC Hydro seeks baseload power boost from stable sources

BC Hydro seeks baseload power boost from stable sources
British Columbia's power utility has begun the process to boost the province's baseload electricity generation capacity in a bid to meet the province's growing demand from residents and industries.

BC Hydro seeks baseload power boost from stable sources

Ottawa amps up criticism of Israel over 'appalling conditions' in Gaza

Ottawa amps up criticism of Israel over 'appalling conditions' in Gaza
Ottawa issued a stronger condemnation of Israel's restrictions on food aid in Gaza this week as the country's ambassador continues to reject claims that Israel is violating humanitarian law.

Ottawa amps up criticism of Israel over 'appalling conditions' in Gaza

Inflation volatility, tariff uncertainty keep Bank of Canada sidelined

Inflation volatility, tariff uncertainty keep Bank of Canada sidelined
The unpredictability of the United States' trade war and signs of creeping inflation kept the Bank of Canada's interest rate on hold for a second consecutive decision on Wednesday — even as the central bank braces for an economic hit.

Inflation volatility, tariff uncertainty keep Bank of Canada sidelined

Environment Canada says Canadian wildfire smoke now floating in parts of U.S.

Environment Canada says Canadian wildfire smoke now floating in parts of U.S.
Swaths of smoke from wildfires torching buildings and forcing thousands of people from their homes in Western Canada have travelled as far as Newfoundland and Labrador in the east and Texas in the south.

Environment Canada says Canadian wildfire smoke now floating in parts of U.S.

Steel industry, labour leaders call for government action as U.S. tariffs spike

Steel industry, labour leaders call for government action as U.S. tariffs spike
Canada's steel industry needs the federal government to take swift action as it faces an existential threat from steeply increased U.S. tariff, said Catherine Cobden, head of the Canadian Steel Producers Association.

Steel industry, labour leaders call for government action as U.S. tariffs spike

Carney names former UN ambassador Blanchard as chief of staff

Carney names former UN ambassador Blanchard as chief of staff
Prime Minister Mark Carney announced his permanent chief of staff on Sunday, appointing Marc-André Blanchard, Canada's former ambassador to the United Nations, to one of the most powerful posts in Canadian politics. 

Carney names former UN ambassador Blanchard as chief of staff