OTTAWA – Canada Post is extremely disappointed with the response from the Canadian Union of Postal Workers (CUPW) at the bargaining tables. Late Friday evening, CUPW tabled offers that would add at least $1 billion in new costs over the term of a new collective agreement while rejecting the Corporation’s approach to address the long-term issues with the employee pension plan.
On Saturday, June 25, 2016, Canada Post tabled offers designed to help bring a quick resolution to the negotiations and end the uncertainty that is negatively impacting our customers and our employees. They included modest and manageable wage increases for all employees and no changes to the pension for all employees in the plan. To do that, the Corporation made it clear it required a new pension approach for new hires. Two other unions at Canada Post have already agreed to this approach to help address the long term challenges of the pension plan, which is facing a $6.2 Billion solvency deficit.
In response, CUPW returned to the table six days later with counter offers which completely ignore the pension issue, as well as the other significant challenges faced by the postal service. In their offer, the union rejected any changes to the pension, more than tripled the Corporation’s proposed wage increases and demanded the immediate reinstatement of several changes agreed to in the last round of negotiations in 2012.
While the parcel business has been improving in the last few years, the corporation continues to face the impact of a decade of decline in Lettermail which continues today
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. Last year alone, the Corporation delivered 1.6 Billion fewer pieces of mail than it did in 2006. We need to work together to address these challenges and grow the parcel business, not saddle our customers with more than a $1 Billion in new costs. Canada Post continues to remain at the table to negotiate an agreement that is reasonable and affordable.
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