BIG LOSSES
Canada Post reveals how it was bleeding red ink even before its unionized workforce started rotating strikes last month
OTTAWA — Canada Post on Tuesday revealed deeper losses it’s booking because of a massive pay-equity order this year, while the federal government insisted back-to-work legislation that sent striking postal workers back to their jobs is constitutional.
In releasing its third-quarter financial results, Canada Post highlighted how it was bleeding red ink even before its unionized workforce started rotating strikes last month.
The losses, it said, were a direct result of a historic pay-equity ruling announced in September, which awarded suburban and rural postal employees a 25 per cent pay hike.
“Canada Post recorded a loss before tax of $94 million for the third quarter of 2018, mainly due to the costs of implementing the final pay-equity ruling,” the corporation said.
The arbitrator’s decision was a hangover from the last round of contract negotiations between CUPW and Canada Post.
The agency said it expected pay equity would cost it $550 million by the end of the year, including a charge of $130 million that was put on its books in the final quarter of 2017.
Combined with the costs associated with the rotating walkouts that began Oct. 22 and came to a forced end on Tuesday, Canada Post said it expected to end 2018 with a loss, and that pay equity would result in ongoing annual costs of about $140 million.
While CUPW members celebrated the pay-equity award, a key issue in its ongoing labour dispute with Canada Post has been the treatment of those same rural and suburban mail carriers, known as RSMCs. They’re more likely to be female and, historically, have been paid less than their urban counterparts.
The union vowed to continue fighting for equality for RSMCs, warning of potential court action over the government’s back-towork legislation, Bill C-89.
It will ultimately be up to the courts to decide whether the legislation is constitutional, Labour Minister Patty Hajdu said on her way into a morning meeting with her cabinet colleagues, should it be legally challenged by CUPW.