Dive Brief:
- Canada Post and the Canadian Union of Postal Workers have reached new contract agreements in principle, and the union has suspended all strike activity, the government-owned carrier announced Friday. Specific terms were not disclosed.
- While "the main points" have been agreed upon, the parties still have to iron out contractual language, CUPW National President Jan Simpson said in an update Friday. Once that step is complete, the proposed contracts — one covering urban workers, the other addressing rural and suburban mail carriers — will be presented to union members for ratification votes.
- “Should the Tentative Agreements not be reached because the parties disagree on how the agreement in principle is reflected in language provisions, the suspension will be lifted for both parties, and the Union may continue strike activity," Simpson said.
Dive Insight:
The advancement in labor talks and halt to strike activity could provide relief for Canada Post shippers ahead of the critical peak holiday season. For more than a month, CUPW-represented workers have deployed rotating strikes in various locations throughout the country, the most recent labor disruption tied to a contract negotiations saga spanning more than two years.
The progress is also a step in the right direction for Canada Post. The carrier has faced mounting losses in part due to customers shifting their volume to other delivery providers amid the labor turmoil.
Canada Post reported a pre-tax loss of $541 million in Q3, the largest in its history, according to a Nov. 21 news release. The result factored in a 40% drop in revenue for its parcel business.
"For the third quarter and first nine months of the year, revenue fell sharply as strike activity and uncertainty about service disruptions drove customers to flexible competitors that could offer delivery stability," the release said.
Even if Canada Post and CUPW finalize their agreements in principle, it's not a guarantee that union members will ratify the proposed deals. Earlier this year, employees rejected proposed offers resulting from a government-ordered process that the union opposed.
