The union representing postal workers says it has received notice that its members will be locked out by Canada Post on Friday morning if the two sides can't reach a new agreement.
The Canadian Union of Postal Workers (CUPW) announced on Tuesday afternoon that it was told by Canada Post of its intention to lock workers out at 8 a.m. Friday.
The notice came roughly eight hours after CUPW issued a 72-hour strike notice.
“Our goal has always been to reach negotiated collective agreements that support the long-term success of our public post office, while addressing the real issues our members face daily,” said Jan Simpson, CUPW National President. “Canada Post has the ability to make that happen without any job action, but it needs to come to the bargaining table and resolve both new and longstanding issues.”
The Canadian Union of Postal Workers issued a 72-hour strike notice Tuesday morning, the latest development in a labour dispute just ahead of the Crown Corporation's busiest time of the year.
The union said a list of issues remain unsolved, including wage increases in line with inflation, adding another ten paid sick days, improved rights for temporary workers, and better measures to avoid contracting out of work.
CUPW's national executive board said despite almost a year of bargaining, the two sides remain far apart on those issues and others.
"Although we've given notice to Canada Post, the National Executive Board has not yet determined whether job action will take place immediately," said a media release from CUPW. "It will depend on Canada Post's actions at the bargaining table in the days to come."
Canada Post lost $490-million in the first six months of the year and more than $3-billion since 2018.
Late last month, it went public with its offer to mail carriers. The offer included 11.5 per cent more in pay over four years, greater protections for pension benefits, better leave entitlements, measures to protect job security, and full support for merging the urban and rural/suburban bargaining units.
As of November 2, both sides could legally lock out workers or go on strike.
Workers at Canada Post gave their union bargaining team a strong strike mandate of over 95 per cent.
Canada Post has responded, saying it "intends to continue delivering for Canadians and Canadian businesses while working to reach negotiated settlements."
"In the event of a labour disruption, the corporation will work to minimize service disruptions, but customers may experience delays," its statement said. "Mail and parcels flow through Canada Post's highly integrated national network each day to get from sender to receiver. Shutting down facilities or regions with rotating strikes can cause immediate and prolonged ripple effects throughout the network."
The service also warns just the threat of a strike has significantly eroded postal volumes. Parcel volumes have dropped by 28 per cent and continue to slide.
It notified the union that unless the two sides reach a deal, it'll rip up the current collective agreement, so it can adjust its operations.
"Canada Post is rapidly falling behind in today's highly competitive, customer-focused parcel delivery market," said the corporation. "To secure the future of the business, the corporation needs a more flexible and affordable delivery model. Without these changes, the significant challenges facing Canada Post will intensify."