Canada Post workers issued a nationwide overtime ban, effective Friday, the Canadian Union of Postal Workers announced. The move comes as labor contracts covering more than 50,000 workers expired following months of stalled negotiations between the union and the national carrier.
The union opted for the ban instead of a nationwide work stoppage “to minimize disruptions to the public, and lost days to members,” CUPW National President Jan Simpson said in a statement. Under the ban, union members are being asked to refuse to work more than eight hours per day and 40 hours per week.
Earlier this week, the union issued strike notices to the carrier, although it did not specify what form the action would take. At the time, Canada Post told customers to expect either a national disruption or rotating strike activity.
The overtime ban will allow Canada Post operations to continue operating, but it may cause customer delays, Canada Post said in a press release Friday.
The CUPW said it offered a two-week truce to Canada Post to continue negotiations prior to the ban. The union did not indicate how long the ban would last but would consider additional actions if Canada Post retaliates, including with layoffs.
Ahead of Friday’s announcement, the CUPW and Canada Post had made limited progress in reaching new contracts. Weekend delivery remains a point of contention. Canada Post is pushing to staff those operations with part-time workers while the union is vying for full-time employees to handle that work instead.
The two sides are also far apart in terms of employees’ wages. In an offer presented Wednesday, Canada Post pitched a pay increase of 13.59% over four years, but the union said that fell short of the 19% pay bump it’s seeking to keep pace with rising costs of living.
The CUPW's previous strike against Canada Post, a disruptive peak season work stoppage, ended just five months ago after the Canada Industrial Relations Board ordered employees to return to work.
Industry-wide delays may be limited given the nature of the action and timing during a softer-demand period, but shippers may still need contingency plans for a possible full strike, experts told Supply Chain Dive last month. Securing capacity at other carriers and being transparent with customers about potential delivery delays should be among the top priorities, the experts said.
Canada Post is a popular shipping option for e-commerce retailers and small businesses due to its country-wide coverage and relatively low prices. Industry groups such as the Canadian Federation of Independent Business and the Retail Council of Canada have urged the carrier and its workers' union to reach a resolution to limit disruptions.
“Retailers are already facing significant pressure due to ongoing global trade tensions," Diane J. Brisebois, president and CEO of the Retail Council of Canada, said in a news release Tuesday. "Another Canada Post shutdown would hit businesses hard, just as they are trying to recover from the last disruption and prepare for the critical summer and back-to-school retail seasons.”
