Canada Post issues 72 hour lockout notice

***Update***

It looks like mail will continue to move across the country on Monday, after signs of progress in labour negotiations between Cananda Post and its employees.

The post office has withdrawn a threat to lock out 50 thousand  of its workers, meaning a labour stoppage has been avoided for the time being.  The Crown Corporation and the Canadian Union of Postal Workers are at odds over wage parity and employee pensions.  The Federal Labour Minister says she’s optimistic the two sides can come to an agreement.

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Canada Post issued a news release early this morning announcing plans to suspend the collective agreement as early as Friday. Canada Post says that it does not necessarily mean it will shut down on Friday, but rather, it will allow them to take measures necessary to respond to the changing business reality. In an earlier statement issued Monday Canada Post had said it still hopes to negotiate a deal with the Canadian Union of Postal Workers, adding that the offers made on June 25th represent what they’re calling a fair and reasonable frame work for settlements. Canada Post says that CUPW’s demands are not affordable and would add about one billion dollars in cost over the contract term.

In response the Union accuses Canada Post of using the lockout notice to drive 50 000 workers onto the streets without pay. Changes to employee pension plans have been the key sticking point in negotiations between the two sides.

Canada Post has said in the event of a full work disruption it will not operate, meaning mail and parcels will not be delivered and new items will not be accepted. However the Canada Revenue Agency has said that CUPW has agreed to deliver essential benefit cheques, which include the working income tax benefit, old age security cheques, Canada Pension Plan and Canada Child Benefit cheques.

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