The Canadian Union of Postal Workers has given 72-hour strike notice to Canada Post. The notice is for both the union's urban bargaining unit and its rural and suburban unit.
In a release early Tuesday morning, the union says workers will be in a legal strike position as of Friday if negotiated settlements have not been reached.
However, the union says its national executive board has yet to decide if a job action will happen at the deadline, saying that will depend on Canada Post's actions at the bargaining table in the coming days.
"After almost a year of bargaining, despite our best efforts, the parties remain far apart on many issues," the union said in statement.
Labour Minister Steven MacKinnon said the federal government is urging both sides negotiate a settlement ahead of the looming deadline.
"We are hoping to achieve a deal at the table," he said at a Tuesday news conference. "We will make every effort possible to keep them at the table and keep them talking, and we hope to achieve a negotiated settlement there."
Canada Post's latest contract offer included annual wage increases that amounted to 11.5 per cent over four years. It also offered protection of the defined benefit pension for current employees, as well as job security and health benefits.
The union has rejected the proposal.
The union announced last month that its members had voted overwhelmingly to support a strike if a deal could not be reached at the bargaining table.
In a news release, Canada Post said if the union initiates a rotating strike activity, it intends to continue delivering while working to reach negotiated agreements.
"However, the ongoing possibility of a labour disruption has been significantly eroding Canada Post's volumes and escalating the negative financial impact on the company," it said, adding this is normally the busiest time of year.
Canada Post said it has notified the union that unless new agreements are reached, the current collective agreements will no longer apply as of Friday.
"The corporation will then be in a position, using the means provided in the Canada Labour Code, to adjust operations based on its operational realities and business needs."
It also said that it's agreed with the union to continue delivering socio-economic cheques in the event of a strike so that Canadians still receive government financial assistance.
Canada Post has been struggling for years amid a shifting parcel delivery market and the impacts of the COVID-19 pandemic. At the organization's annual general meeting in August, it said its financial situation is unsustainable and that significant change is required to preserve its delivery network.
