Toronto Star

Postal workers balk at condition set for truce

Requiring binding arbitratio­n if no deal reached in 30 days a ‘poison pill,’ union says

- VANESSA LU BUSINESS REPORTER

Canada Post says it will extend contract talks for 30 days and suspend its lockout threat, as long as the union will agree to binding arbitratio­n if no deal is reached in that period.

The union wants the talks held without the “poison pill” threat of arbitratio­n to settle the dispute.

“Our bosses at Canada Post could just sit there for 30 days, refuse to discuss our proposals, as they have been doing for months, and then wait things out in the legal system for years,” said Mike Palecek, national president of the Canadian Union of Postal Workers (CUPW), in a statement.

A looming threat of a disruption to the postal service has already adversely affected mail and parcel volumes, Canada Post says.

“Our employees are coming to work to find the amount of mail and parcels they process and deliver has dropped significan­tly,” said a company statement issued Friday. Parcel volumes are down more than 80 per cent from major e-commerce customers and the number of letters in the system on Thursday was more than 80 per cent fewer than the same day a year ago.

The two sides have been locked in negotiatio­ns for months, holed up at an Ottawa hotel since April. But the CUPW has accused management of unfair labour practice, with the intent of provoking a disruption, arguing little negotiatin­g has taken place.

The company served notice earlier this week that it would be ready to lock out the 50,000 unionized workers on Friday. It moved the deadline to Monday, urging the union to consider again binding arbitratio­n.

The union fears Canada Post is preparing to slash employees’ hours, issue layoffs, cut planned vacations and withhold $3.5 million a month in union dues.

“Our members, their families and all Canadians do not deserve to have this threat of a lockout ‘looming’ over our heads from a profitable public service. Postal workers want to work and people need to know that it’s safe to use the mail system,” Palecek said.

The biggest stumbling blocks are the company’s push for pension changes and the union’s demand that pay for rural and suburban carriers, who are predominan­tly women, be on par with urban carriers.

The company wants to put future employees on a defined contributi­on pension plan, instead of the existing defined benefit pension plan, which is indexed for inflation. Two other unions and management have already switched for new hires.

“It is fundamenta­lly unjust to have people work side by side, getting wildly different compensati­on,” said Palecek in an earlier interview.

Under a defined benefit plan, members are guaranteed a certain payout. If there’s a shortfall, the company must make it up, but if there’s a surplus, there can be contributi­on holidays. With a defined contributi­on plan, members have investment accounts, but the payout at retirement depends on how those investment­s fare.

The union wants to raise wages for its rural and suburban carriers but the company argues the jobs are set up differentl­y, adding some suburban carriers can earn as much or more than urban carriers.

 ?? DARREN CALABRESE/THE CANADIAN PRESS ?? “Have a heart” might be the message for Canada Post and its union on this post box in Halifax.
DARREN CALABRESE/THE CANADIAN PRESS “Have a heart” might be the message for Canada Post and its union on this post box in Halifax.

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