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Canada Post declines union's proposal for arbitration to settle work conflict

Canada Post declined a petition from the union of approximately 55,000 of its employees for the escalation of their ongoing labour dispute to binding arbitration.

Canada Post declined a plea from the union comprising approximately 55,000 of its employees for...
Canada Post declined a plea from the union comprising approximately 55,000 of its employees for arbitration to settle their ongoing labor dispute.

Canada Post declines union's proposal for arbitration to settle work conflict

Locked in a Battle: Canada Post and Union Clash Over Labor Dispute

The Canadian Union of Postal Workers (CUPW) has found themselves at an impasse with Canada Post Corporation, as negotiations for a new collective agreement are at a standstill. On Saturday, the union proposed engaging in a binding arbitration process to settle the issue, a proposal that was swiftly dismissed by Canada Post on Sunday.

The CUPW is eager to enter a fair and conclusive arbitration process to resolve the long-drawn-out negotiations that have been hindering progress for months. By inviting Canada Post to participate in this process, the union hopes to find a resolution swiftly.

However, Canada Post rebuffed the proposal, citing the desire to restore stability to the postal service. The corporation asserts that arbitration would lead to instability, given its length and complexity. In their view, arbitration would likely extend beyond a year, further exacerbating their financial challenges.

On Wednesday, Canada Post presented its "final offers" to the union, which included the termination of compulsory overtime and a signing bonus of up to $1,000. Despite offering concessions, they insisted on a 14-percent cumulative wage hike over four years and the use of part-time workers for weekend shifts, a contentious issue in the negotiations.

Canada Post contends that the two parties are at odds after months of conciliation and mediation. As a result, they have requested Jobs Minister Patty Hajdu to force a union membership vote on their proposals.

In response, the CUPW stated that such a forced vote would not bring about long-term labor peace, regardless of its outcome. The union believes Canada Post is not genuinely committed to finding a reasonable solution to the negotiation process.

Although the union has been in a legal strike position since May 23, they have opted to ban members from working overtime rather than resorting to a strike, thus avoiding potential disruptions to mail services.

According to reports, Canada Post is grappling with significant financial difficulties, including a $1.3-billion operating loss in 2024. The corporation has been criticized for being "effectively insolvent" by the Industrial Inquiry Commission[1][4][5].

This report has been compiled by The Canadian Press and was first published on June 1, 2025.

Sources:

  1. Canada Post Corporation Financial Struggles
  2. Canada Post's $1.3-Billion Operating Loss Revealed
  3. CUPW Rejects Canada Post's Final Offer
  4. Calls for Canada Post Arbitration Grow Louder
  5. Canada Post's Reduced Hours During Labor Dispute

The Canadian Union of Postal Workers (CUPW) is eager to find a resolution to their long-standing labor dispute with Canada Post Corporation, especially in light of the corporation's recent financial struggles in the banking-and-insurance industry. Despite the union's proposal for binding arbitration, Canada Post remains hesitant, fearing the process would exacerbate their business and finance challenges, given its complexity and potential length.

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