Negotiations updates

Canada Post will participate in a second round of hearings on Wednesday and Thursday as the Industrial Inquiry Commission (IIC) reviews the collective bargaining dispute with the Canadian Union of Postal Workers (CUPW), as well as the company’s broader financial situation and competitiveness.

Canada Post made a second written submission to the IIC ahead of this week’s hearings. The submission lays out the need for urgent changes to its operating and delivery model as well as the outdated regulatory and policy regime in which the company operates. This one-page summary provides an overview of our submission and the changes we need to better compete.

Urgent changes needed to regulatory, policy regime

The current regulatory and policy framework in which Canada Post operates was designed more than 15 years ago to support a steady stream of letter mail. It is now a key impediment in our ability to respond to the current and future service expectations of Canadians in a financially sustainable way.

Urgent review and changes are required to the regulatory and policy framework to address Canada Post’s financial crisis and protect its longstanding role as a vital national infrastructure for Canadians and Canadian businesses. As a result, we are seeking:

• A comprehensive review with consultations of the Canadian Postal Service Charter, with a focus on updating service standards, delivery frequency and post office requirements;
• An updated process for calculating and setting letter mail price increases;
• Replacing the moratorium on rural post office closures with a modern approach that protects rural service while reflecting the country’s changing demographics;
• An end to the moratorium on community mailbox conversions.

The new submission reiterates the need for more flexible staffing models in our collective agreements with CUPW, as well as changes to employee leave, pension and retirement benefits that maintain Canada Post’s place as an employer of choice while helping contain costs.

However, the company also needs greater regulatory flexibility and autonomy to make decisions. This flexibility, together with modernized collective agreements, will enable it to deliver better service to Canadians while restoring it to financial self-sustainability.

Canada Post’s submissions to the IIC as well as a summary of our recommendations and video of the first two days of hearings can be found here.

About the Industrial Inquiry Commission

Established by the Minister of Labour in December, the IIC comes at a critically important time for Canada’s postal service as we work to respond to the changing needs of Canadians and address the significant challenges facing the company.

The IIC is being led by William Kaplan, a highly respected expert in arbitration and mediation who is familiar with Canada Post. It has been directed to examine the key issues with respect to the collective bargaining dispute; and more specifically:

• Canada Post’s financial situation; 
• the company’s need to diversify or alter its delivery models in response to current business demands; 
• Canada Post’s viability as it is currently configured; 
• the union’s negotiated commitments to job security and full-time employment; and
• the need to protect the health and safety of employees.

Report expected in May

A first round of public hearings was held on Monday, January 27, and Tuesday, January 28. During the hearings, Canada Post senior leaders presented on the company’s financial challenges and our need for flexibility to fight for our future.

A third round of hearings is scheduled for March 25.

The IIC is expected to present its report to the Minister by May 15.

Keeping you informed

We’ll continue to provide updates on the work of the IIC and negotiations with CUPW as they become available.