But let’s wait a moment before congratulating the minister for his intervention, motivated in large part by pressure from the business community.
Obviously he smelled the hot soup. It is no coincidence that he mentioned “fed up” among the population to justify this radical action in terms of labor relations.
Let’s not forget that this conflict has caused small and medium-sized businesses to lose considerable sums of money, unable to have their precious packages delivered to their customers in preparation for the holiday season.
Let’s not forget, because it’s part of the equation, that this four-week strike deprived 55,000 unionized employees across the country of their paychecks.
This conflict had become a drag on the Canadian economy. Should the interventionist minister have moved more quickly to limit the damage?
Would it have been better, on the contrary, for him to remain idly and wait for the employer and the Postal Workers’ Union (CUPW) to empty their bag – full of grievances – once and for all? all?
Time will tell if he did what he had to do by handing over to the Canadian Industrial Relations Board (CIRB) to try to resolve this impasse.
We must remember, however, that he gave the green light to the holding of a commission of inquiry which will be responsible for taking stock of what could become of Canada Post, once the next collective agreement has been negotiated.
This task will fall to commissioner and arbitrator William Kaplan, who must submit his recommendations by May 15. We wish him good luck because he will really need it. Should it be noted that the union does not have very high regard for the management of Canada Post, which it accuses of very poorly managing this essential, heavily loss-making service?
Business model
Let’s say things as they are: the postal company is doing very badly. Financial losses accumulate year after year (more than $3 billion since 2018). Since the start of the year, they have approached half a billion dollars.
The business model, in its current form, simply does not work. Letter carriers deliver half as many letters (5.2 billion in 2006 compared to only 2.2 billion in 2023). Parcel delivery is struggling just as much.
This market, although growing strongly, is monopolized by private services in a very large proportion, such as FedEx, Amazon, Intelcom and other private delivery firms.
Canada Post has failed to adapt to the new business reality. Its structure is heavy. It needs a solid boost to prevent it from heading towards its doom.
It is all this, and many other things, that we will discuss over the coming weeks. We are going to focus on Canada Post’s way of doing things, which clearly does not suit the federal government.
We will ask union negotiators to see how they could make concessions. We will propose new times to deliver packages on Saturday and Sunday. We will, in fact, seek to develop a Canada Post 2.0, to the extent that it is possible to give new impetus to this venerable 270-year-old institution.
Unless there is a last minute outcome, which seems more than unlikely, it will therefore be a (forced) return to work for the unionized employees who have been on strike for four weeks for nothing at all.
The question is worth asking: could it be that Canada Post has been dragging its feet, hoping that the government in Ottawa will intervene in its place?
It should be remembered here that this is the third time that Minister MacKinnon has interfered in a conflict by availing himself of the powers conferred on him under the Canada Labor Code. Let us remember the actions he took this fall by imposing binding arbitration to end conflicts at CN, CP, and in the seaports of Montreal, Quebec and British Columbia.
Horn blasts
It’s clear: the strike at Canada Post has made some people unhappy. The strikers saw this on the picket lines. If, on the whole, motorists honked their horns in support, others, on the contrary, shouted nonsense at them and allowed themselves to make derogatory comments.
It must be said that there has been a lot of misinformation about “$100,000 salaries”, the “chrome” pension fund and the working conditions granted to employees.
In fact, the median salary is more or less $55,000 per year, or just under $30 per hour. In fact, they contribute equally to the retirement fund with the employer, and the pension plan is managed in an exemplary manner, according to a union source.
We will say what we want, we will think what we want to think, the work of postmen is not easy. The bags they carry on their shoulders weigh up to 50 pounds and the daily journey on foot varies from 10 to 30 kilometers.
The union is demanding salary increases of 19% over four years. Canada Post, which is in the dark red, is not ready to go that far. Its offer is limited to 11.5%, still over four years.
It will be necessary to find a fair balance between union demands and employer offers to satisfy the needs and demands of both.
Above all, it will be necessary to establish a climate of trust within the state company itself, once the new collective agreement has been ratified, ideally on May 22, 2025.
But what exactly are we expecting from Canada Post in the years to come? Will we want to partially privatize it? Will they divest from Purolator, 91% owned by the state-owned company?
Will we stop delivering mail to the door or to post office boxes? Will we focus on the much more lucrative parcel delivery market?
The coming months will be decisive for the future of the postal company.
Until then, take the time to say hello to your kind postman when you meet him on your way.
Because he too is wondering what his future will be in the new business model that CEO Doug Ettinger and his group of collaborators are going to concoct for us.
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