Dive Brief:
- Canada Post has paused contract negotiations with the Canadian Union of Postal Workers as the clock ticks on a potential strike next week.
- The government-owned carrier said Tuesday that discussions in the past several days haven't created "meaningful progress." The pause will help prepare comprehensive proposals designed to move talks forward and achieve a resolution, according to Canada Post.
- "We had hoped a new collective agreement would be reached by this point, but without new agreements, there is a possibility of a labour disruption on or after May 22," Canada Post said.
Dive Insight:
May 22 is the date contract agreements between the two parties expire, opening the door for a potential work stoppage that would challenge Canada's parcel delivery industry again just months after a peak season Canada Post strike.
Despite resuming negotiations in late April, the carrier and CUPW still appear to have a long way to go to secure a deal and avoid service disruptions.
Canada Post said the union has maintained or hardened its positions on critical issues. On the other hand, CUPW National President Jan Simpson said in a Tuesday negotiations update to members that the carrier's demands remain virtually unchanged with "numerous rollbacks."
"Throughout the entire bargaining process, Canada Post has refused to take responsibility for the financial situation it finds itself in," Simpson said. "They have also ignored our offer to use existing collective agreement language to allow for weekend delivery."
Weekend delivery has been a sticking point in contract discussions. Canada Post wants to create a new part-time workforce for those operations, while the union is pushing for full-time employees to handle weekend delivery.
Canada Post did not provide CUPW with a date when it would return to the bargaining table with a new set of proposals, according to Simpson. She said the union expects Canada Post to bring new offers following the release of a report from an industrial inquiry commission established to look into the dispute. The commission is slated to present the report to Canada's Minister of Labour by Thursday.
Ahead of the potential strike, experts have told Supply Chain Dive that shippers reliant on Canada Post should secure capacity at alternative carriers and communicate any delivery risks to customers. One alternative, UPS, is implementing a U.S.-to-Canada surcharge for various services starting May 18.
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