Strike at Canada Post: no return to work in sight, says the Minister of Labor

Federal Labor Minister Steven MacKinnon does not foresee a quick end to the strike at Canada Post, which has lasted for more than a week.

Asked on ICI Première about this conflict which deprives millions of Canadians of postal services, Mr. MacKinnon did not seem the most optimistic, even if he assures that the negotiations are continuing “7 days a week”.

I will not hide from you that these are very, very difficult discussionswarned the minister. To host Patrick Masbourian, who asked him if the work stoppage would last several more days, the minister replied: It may very well be so.

The approximately 55,000 postal workers have been on strike since November 15.

According to Mr. MacKinnon, despite the presence of mediators, the issues of this strike are very important for the future of Canada Post and must be negotiated between the company and its workers.

A model to review

Although Mr. MacKinnon has previously ordered arbitrations in labor disputes involving ports or rail transportation, the dispute cannot simply be decided by an arbitrator this time, he explained.

Canada Post’s business model has changed significantly over the years. We send a lot fewer letters. I think on average we receive two letters per week whereas there were seven in our box 30 years ago.

It is now parcels that allow Canada Post to maintain a certain level of traffic in its network.he recalled.

There is a collective agreement built for the delivery of letters and not parcels. This is the main issue.

The issues of salaries, contract workers, job security, social benefits and working conditions are at the heart of the dispute.

Given the significant competition that private transportation companies provide to Canada Post, the latter wants, among other things, to adapt its practices and operations to remain competitive, in particular by introducing weekend deliveries.

Already 8 million parcels fewer

Last Friday, Canada Post announced that it had lost $315 million before taxes at the end of the third quarter of 2024, compared to a pre-tax loss of $290 million during the same period in 2023.

The state-owned company also claims to have processed 8 million fewer packages than last year since the start of the strike, affirming at the same time that its customers have had to turn to the competition for their deliveries.

Union members are demanding cumulative salary increases of 24% over four years, while Canada Post is proposing 11.5%.

Management also provided additional paid leave while protecting the defined benefit pension plan and job security provisions.

The union says full-time employees should deliver packages on weekends, while Canada Post hopes to hire more part-time workers to do so.

Obviously, I have a thought for those who depend on Canada Post, the employees, their families… It’s clear that a labor conflict is disruptive, admitted Steven MacKinnon. But unlike other conflicts […]this is a turning point for Canada Post and it is essential in my opinion that employees, their union and the company agree on the path to follow for the future.

I take it day by day. Obviously, we are not ruling out any optionhe nevertheless added.