Canada Post has put forward a fresh batch of contract proposals to the Canadian Union of Postal Workers (CUPW), offering salary hikes and safeguarding benefits while emphasizing the importance of modernizing its operations and addressing financial challenges.
The company outlined that the new offers build upon the key elements of its previous final offer from May 28, with additional commitments included.
Key highlights of the proposals comprise cumulative wage increases totaling 13.59% over a span of four years, retention of a defined benefit pension scheme, health and post-retirement benefits, vacation allowances of up to seven weeks, pre-retirement leave, and a cost-of-living adjustment aimed at shielding employees from unexpected inflation.
The labor dispute has persisted for several months, with 55,000 postal employees represented by CUPW engaged in talks with Canada Post on issues such as salaries, part-time opportunities, and delivery standards.
In a statement on Friday, Canada Post underscored that the package reflects the financial constraints it faces while striving to uphold quality employment and benefits for its workers in the long run. The corporation argues that modernization is crucial for its viability, pointing to dwindling mail volumes, intensifying parcel competition, and financial challenges exacerbated by strikes earlier this year.
“Given the deteriorating financial state of the company, a signing bonus for employees is no longer feasible,” a spokesperson for Canada Post remarked.
A key point of contention in the proposal is a new workforce adjustment process for the urban bargaining unit, intended to replace existing “job security for life” provisions.
Under the new framework, Canada Post would provide a six-month notice prior to any reductions, engage in consultations with CUPW, and offer voluntary separation incentives of up to 78 weeks’ base pay. The system would still prioritize seniority-based bidding and bumping, with layoffs viewed as a last resort if attrition and incentives fall short.
CUPW has yet to issue an official response to the latest proposal. The union has previously voiced concerns about Canada Post’s drive for delivery model modifications, cautioning that they could impact service quality and job stability.
Negotiations are set to continue in the upcoming days, with both parties facing pressure to strike a balance between the financial constraints of the company and the employees’ calls for stability and fairness.
