Negotiations updates

Canada Post and CUPW appear at Industrial Inquiry Commission hearings

Canada Post and the Canadian Union of Postal Workers (CUPW) participated in two days of hearings this week at the Industrial Inquiry Commission (IIC), led by labour and arbitration expert William Kaplan. The IIC, established by the Minister of Labour in December, is examining key issues in the collective bargaining dispute with CUPW.

Canada Post senior leaders presented at the hearing on Monday. The commission heard from:

• President and CEO Doug Ettinger, who provided an overview of the significant challenges facing Canada Post and outlined a future vision for the postal service.
• Rindala El-Hage, Chief Financial Officer, who provided a detailed update on our current financial position.
• Carrie Chisholm, Vice-President, Product Management and Customer Experience, who spoke about the rapidly evolving parcel delivery market and changing customer expectations.
• Alexandre Brisson, Vice-President, Engineering, who explained some of the key operational challenges we’re facing with an outdated delivery model.

Below is a summary of some of the key points our team shared at the hearing.

Financial situation

• Several years of significant losses have forced us to tap into our cash reserves.
• The short-term repayable financing of up to $1.034 billion from the Government of Canada ensures Canada Post can continue operating as it works to address the significant structural changes needed.
• Deficits will continue to increase due to letter mail erosion, the competitive landscape, and rising operating costs.

Flexibility to fight for our future

• Our employees are the best in the delivery business. However, of our current collective agreements and regulatory regime limit our ability to meet the changing needs of our customers.
• To adapt and compete in today’s environment, Canada Post needs flexibility:
• To base our delivery routes on the parcel volumes that must be delivered each day.
• To offer weekend, evening and next-day delivery services at affordable rates.
• From a regulatory standpoint, to be nimble and align our services with the changing needs of Canadians, while providing modern checks and balances in terms of government oversight.
• To continue to be there for those who need us most – small businesses, rural and remote and northern communities. For them, we are a lifeline.

Commission report expected in May

Additional hearing dates are scheduled for February and March and the IIC is expected to provide its report to the Minister by May 15. We believe this process will help restart negotiations with an improved and shared understanding of what we’re faced with. We are committed to working with CUPW to build a stronger postal service.

Collective agreements remain in effect

The existing collective agreements between Canada Post and CUPW have been extended until May 22. A labour disruption cannot occur while these collective agreements remain in effect.

Keeping Canadians and customers informed

We appreciate everyone’s patience and understanding as we work through this process. We’ll continue to keep customers informed on the IIC and negotiations with CUPW.