Postal union says lockout is likely in July

‘Not a whole lot of progress being made’ in the talks between Ottawa, Canada Post

The postal workers’ union says that Canada Post wants to shut down the post office in early July, citing management’s refusal to budge on changes to pensions, benefits and job security.

“We’re expecting them to lock us out,” said Mike Palecek, national president of the Canadian Union of Postal Workers. “We believe this was about timing. They want to have the dispute in July when the federal task force is supposed to be talking about the future of Canada Post.”

Earlier this month, the federal government ordered a formal review of Canada Post’s operations, including the proposal to end door-to-door delivery.

Formal negotiations continue at an Ottawa hotel, though Palecek says Canada Post is asking for concessions on job security, benefits and eliminating the defined benefit pension plan, replacing it with a defined contribution plan.

“Things are tense. There is not a whole lot of progress being made,” he said.

Two separate contracts are being negotiated — an urban one with 42,000 members and the rural-suburban one with about 8,000.

For the union, changes to the pension plan are a no go.

“We would absolutely not accept that,” he said.

Canada Post insists it is working toward getting a deal, but has also begun to warn its biggest customers of the looming July 2 deadline.

“We’ve been trying to be upfront and open with them, so they understand that there is a potential, but we are going to do everything possible to avoid a work disruption,” said spokesman Jon Hamilton. “We understand our customers are looking for certainty. That’s why they started calling very early on during negotiations, especially after our last round.”

The last round was a bitter labour dispute in 2011 that ended with Parliament ordering workers back on the job.

This time, Canada Post filed a no- tice of dispute for conciliation back in April, which the union called a provocative move, signalling the company was spoiling for a fight. The post office said it was a way to spur negotiations and set out a clear timeline.

While Canada Post refused to discuss specific bargaining issues, especially wages and pensions, Hamilton said management is looking for more flexibility when it comes to delivery.

He noted that parcel delivery continues to increase, especially with online shopping, so the company would like to adjust schedules to handle it, such as with weekend delivery before Christmas.

The post office reported a $44-million profit before tax in the first quarter, up from $24 million in the same period in 2015, credited to parcels. Parcel revenue rose to $421 million, up $41 million from the year before, but mail volumes and revenue fell along with direct mail.

“This is becoming our new normal. So how do we respond to that?” Hamilton said, adding the company is looking for flexibility within the collective agreement to increase deliveries at certain times.

Palecek fired back that the union is prepared to discuss flexibility, but the company wants to use temporary workers who are paid at the lowest rate.

“Canada Post is making healthy profits,” he said, noting the first quarter tends to be its worst quarter. “I wouldn’t be surprised if there were record profits this year.”