Dive Brief:
- Canada Post and the Canadian Union of Postal Workers have agreed to resume contract negotiations this week, a step forward amid fears of a potential strike next month, the government-owned carrier announced Tuesday.
- Talks between the two parties broke down in early March. New meetings are scheduled for Wednesday and Thursday, with a mediator on hand to assist in the negotiations, according to a Tuesday update from CUPW.
- "If progress is made, talks will continue," said CUPW National President Jan Simpson in the update, describing the ongoing negotiations as "a challenging round of bargaining."
Dive Insight:
Shippers are preparing for another potential halt to Canada Post operations if the carrier and CUPW don't come to terms by the May 22 expiration date of their current agreements. Last year's peak season strike spurred disruption and delays throughout the country's parcel delivery sector before the Canada Industrial Relations Board intervened and forced operations to restart.
The union and Canada Post are attempting to secure two deals, one covering workers in urban postal operations and another for rural and suburban mail carriers. Neither side has reported much progress in negotiations this year, with Canada Post's interest in using part-time workers for weekend deliveries being a key point of contention.
"We know this ongoing uncertainty is challenging for your business," Canada Post said in an update to customers Tuesday. "We had hoped new agreements would be reached by this point – and providing you with this certainty remains our priority."
At least four scenarios could happen if agreements are not reached by May 22, Simpson said Friday: Canada Post could lock out workers, the union could strike, the government could re-intervene in talks, or Canada Post could push to lay off employees or impose other changes.
While Canada Post and CUPW have plenty of issues to work through by next month, Canada's government has added motivation to advance the talks, said Imtiaz Kermali, VP of sales and marketing at eShipper, in an email.
Prime Minister Mark Carney’s Liberal Party secured an election victory this week, and there could be pressure to ensure a deal is reached to give business owners and citizens confidence the “party is starting strong,” Kermali added.
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