The union representing Canada Post employees called for a halt on overtime work amid tense negotiations over contract offers between the Crown corporation and postal workers, which some perceive to be only a “half-measure.”
A Canada Post mail carrier, who wished to remain anonymous, called the overtime ban a “sign of weakness,” since it’s being implemented during a time when inventory is already low.
CUPW told the roughly 55,000 Canada Post employees that they were to refuse any work beyond eight hours per day and over 40 hours a week, late Thursday night.
“CUPW offered a truce of two weeks to continue negotiations without the threat of a strike or a lockout, but Canada Post refused. The Corporation’s actions have created widespread public uncertainty, which has already pushed some customers to our competitors,” wrote the union on Friday.
“At this time, the Union has decided to proceed with an overtime ban to minimize disruptions to the public, and lost days to members.”
The source speaking with True North said that, “Canada Post is really heavily reliant on (overtime) because they never have enough on-call people.”
“So if someone calls in sick or gets hurt, they give up portions to people for overtime, and they get paid time and a half. It always gets done because people want to do it,” said the source.
“But there’s not a lot of volume right now. Nobody’s sending anything. So I don’t know what a no overtime ban really accomplishes. I guess it’s just a way of ‘doing something’ without actually doing something.”
Canada Post responded to the ban by saying it was unsure of how “strike action may evolve” but that “further escalation in strike activity would have major impacts on employees, small businesses and the millions of Canadians who rely on the postal system.”
The ban follows a meeting between the two sides on Thursday evening, which failed to result in a deal.
“The meeting lasted less than half an hour, with CUPW raising only a small number of the many outstanding issues in an informal manner,” said Canada Post spokeswoman Lisa Liu in a statement. “It was unfortunately not enough to demonstrate meaningful progress.”
CUPW initiated a month-long strike on Nov. 15 after Canada Post proposed an 11.5 per cent wage increase over four years. The union had requested a 24 per cent increase over that time period to offset the rising cost of living.
The 32-day strike ended in December when the federal government extended existing collective agreements until May 22, 2025.
Labour costs represent the lion’s share of Canada Post’s operating expenses, accounting for $3.9 billion in 2023, or just over 50 per cent of the Crown corporation’s nearly $7.8 billion in total expenditures.
The organization secured a $1.03 billion loan from the federal government in January.
Industrial Inquiry Commissioner William Kaplan published his review of Canada Post’s failing business model last week, where he said the Crown corporation was “facing an existential crisis,” a statement that CUPW rejects.
Among his recommendations, Kaplan suggested ending door-to-door letter mail delivery for individual residences while maintaining it for businesses and called for weekend parcel delivery to become an “immediate priority” for Canada Post.
“Without weekend parcel delivery, Canada Post’s market share will continue to decline,” wrote Kaplan, who also recommended moratoriums for rural post office closures and the removal of community mailbox conversions.
He also recommended that Canada Post “have the flexibility to hire part-time employees” to “assist with volume during the week.”
CUPW said it “fundamentally disagreed” with the majority of Kaplan’s recommendations.
Additionally, CUPW “objected” to the “entire process” in a statement released last week.
However, according to the source, with Christmas and tax seasons finished the union isn’t holding any cards.
“They didn’t want to strike, so it’s a half measure,” the source told True North. “It’s a sign of weakness because there is no overtime to be had right now, honestly. It’s not really pressure.”