Canada Post drops threat to lock out workers

Mail kept moving Monday asCanada Post and the union representing 50,000 of its workers resumed contracttalksand the post office withdrew a threat to lock out its workers.

Canada Post issued a brief statement that said it had withdrawn its lockout notice "which will allow both parties to focus their efforts on serious negotiations."

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"We are also expecting the union to honour their repeated public statements that they have no plans to issue a strike notice," it said. "Assurance from both parties that the postal system will remain open for business while we negotiate will provide the certainty that Canadians and our employees are looking for."

The Crown corporation's news release followed a statement earlier Sunday from Labour MinisterMaryAnnMihychuk, who encouraged the two sides to continue discussions beyond a deadline of 12:01 a.m. ET today that Canada Post had set.

"I am pleased that there has been movement at the bargaining table and that progress is being made," the minister said.

"I remain hopeful that an agreement can be reached by the parties."

In a statement issued Monday,CUPW saidthetwo sidesareworking long hours to reach new collective agreements.

"We remain committed to negotiating fair collective agreements, as we have since the beginning of this process," the union said. "We're encouraged that Canada Post now shares that perspective. We have no plans to issue a 72-hour notice."

Canada Post initially served a lockout notice to CUPWfor last Friday, but later delayed the notice until Monday.

Canada Post issues 72-hour lockout notice

8 years ago

Duration 2:33

Canada Post said it intends to lock out its workers starting on Friday after months of negotiations have failed to make a labour deal between the postal carrier and its largest union.

Negotiations on wages, pensions

The two sides are far apart on two major issues wages and pensions after seven months of negotiations, including 60 days of conciliation talks and more than 30 days with federal mediators.

The union wants rural and suburban mail carriers to be paid by the hour, like urban letter carriers, rather than by how many packages they deliver.

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Canada Post wants to change the pension scheme for new hires, moving them to a defined contribution plan instead of a defined benefit plan. Many private sector companies have moved to defined contribution plans because they reduce costs for companies and shift the risk for futurepayoutsonto employees, who are no longer guaranteed a set return in retirement.

The pension proposal is one other public sector unions are watching closely. If Canada Post's proposal is adopted, it could signal the direction the government wants to take in future talks with other unions.