CANADA Post announced on Sunday that it is seeking a timely and fair resolution to restore stability to the postal system while ensuring employees have a voice in the process by allowing them to vote after 18 months of challenging negotiations with the Canadian Union of Postal Workers (CUPW).

It said that the union’s proposal to send the matter to binding arbitration would do the opposite. Arbitration would be long and complicated, likely lasting more than a year. This would further extend the uncertainty experienced over the last 18 months and accelerate the company’s significant financial challenges. It would also continue to leave employees without a contract – and strip them of their right to vote on a new collective agreement.

Canada Post said that for these reasons and more, CUPW has strongly rejected binding arbitration in the past.

In a bulletin to members on October 30, 2024, CUPW President Jan Simpson wrote: “It’s evident that Canada Post is focused on pushing many of their issues to binding arbitration. This approach would delay the finalization of a complete collective agreement and redirect funds towards lawyers and arbitrators rather than investing in you.”

The Industrial Inquiry Commission has stated that “Canada Post is facing an existential crisis: It is effectively insolvent, or bankrupt. Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate.”

Canada Post said that a timely resolution to negotiations that begins to address these challenges without delay, while respecting the important role its employees play by allowing them to vote on the future path, is the way forward.

Canada Post said that it therefore rejects the union’s proposal and awaits a decision from the Minister of Jobs and Families on its request for the Canada Industrial Relations Board to administer a directed employee vote on our final offer.