Amid the ongoing Canada Post strike, federal Labor Minister Steven MacKinnon announced Friday that he is asking the Canada Industrial Relations Board (CIRB) to order workers to return to work if it agrees. agree with his determination that there is an “impasse” in the negotiations.
If the CIRB agrees, MacKinnon says the labor relations board would order Canada Post and all employees represented by the Canadian Union of Postal Workers to resume operations and extend the terms of existing collective agreements until May 2025.
“Not only have the parties been unable to show any progress toward an agreement, but the federal mediator has informed me that negotiations between both sides are, in fact, going in the wrong direction,” he said during a news conference Friday.
“That is why I am here today to announce that I am implementing a solution to promote favorable conditions for the resolution of this labor dispute and protect the interests of all Canadians.”
When asked about the resumption of services and whether Christmas gifts and letters could be sent, MacKinnon stated that both sides must be heard by CIRB.
He emphasized that if the CIRB comes to the same conclusion as him that the parties are at a “stalemate,” he says the board could issue a directive for workers to return next week.
The strike began on November 15 after Canada Post workers and the employer failed to reach an agreement. The union sought wage increases, better pensions and better health benefits.
In the past, federal governments have used back-to-work legislation during Canada Post strikes, including in 2018 and 2011, to resolve disputes and restore essential services.
A strike by postal workers was followed by a two-week lockout imposed by Canada Post management. However, the Conservative government passed back-to-work legislation to end the disruption. , Prime Minister Justin Trudeau’s government passed back-to-work legislation to resolve another Canada Post strike.
MacKinnon has previously said that Ottawa is not seeking to force an end to the strike and that the government would remain on the sidelines.
The postal shutdown was costing small businesses millions every day, the Canadian Federation of Independent Business said, and was affecting Canadians across the country.
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On Friday, the Canadian Union of Postal Workers (CUPW) issued a statement saying it “denounces in the strongest terms this attack on our constitutionally protected right to collective bargaining and to strike.”
“This order continues a deeply troubling pattern of the government using its arbitrary powers to let employers off the hook, delay, and refuse to negotiate in good faith with workers and their unions,” the statement read.
CUPW added that because this is a “rapidly evolving situation” it has not had time to review all the details.
“What we do know is that postal workers are being forced to return to work without new negotiated collective agreements,” he said, adding that he is currently reviewing the order and considering his options moving forward.
Canada Post said it is also reviewing the details of MacKinnon’s announcement to ensure it is prepared to participate and fully comply.
“As that develops, we look forward to welcoming our employees back to work and serving Canadians and customers. “We will take all appropriate measures to support that process as quickly as possible, given the direction given to us by the Minister,” a spokesperson told Global News in an email on Friday.
“Canadians are rightly fed up”: minister
After nearly a month of stalled negotiations, MacKinnon said he had to step in and use his powers to try to ensure postal operations continued.
The decision is not one he “takes lightly,” he said, adding that it is time to “call a timeout.”
“Canada Post and the Canadian Postal Workers Union remain unable to reach an agreement. Canadians are rightfully fed up,” MacKinnon said.
“As Minister of Labour, I have a responsibility to protect Canadians and the interests of the public, while respecting the rights of the parties involved in this. That is why I am here to announce that I will present a solution to promote conditions conducive to resolving this labor dispute and protecting the interests of all Canadians,” he added.
The strike has affected businesses across the country, with Canada Post unable to process approximately one million packages per day. MacKinnon called the disruption “detrimental” to businesses, causing “economic damage” with each passing day.
He also noted that the strike affected charities during the Christmas season, as fundraising efforts were “threatened” by the ongoing dispute.
The idea now is to extend the terms of their existing collective agreements until May 22, 2025.
During this time, he said an Industrial Inquiry Commission (ICC) would be established, with William Kaplan, an arbitration and mediation lawyer, appointed as commissioner.
“The commissioner will be tasked with examining the structural issues that impede resolution of the current labor dispute. The IIC will be required to submit to me and the parties a report outlining its findings and recommendations by May 15, 2025,” MacKinnon said.
“The review could provide the basis for progress on how to modify collective agreements and clarify the structures, rights and responsibilities of the parties in collective bargaining. The investigation will be broad in scope, examining Canada Post’s entire structure from both a customer and business model perspective. Given the challenging business environment Canada Post now faces.”
The president of Canada Post warned in August that the Crown corporation is at a “critical juncture” and its financial situation is “unsustainable.”
The Crown Corporation’s latest annual report used similar language, noting that it has posted “significant” annual losses since 2018. Last year’s loss was the second largest on record, at $748 million.
The Canadian Federation of Independent Business (CFIB) said Friday it is relieved to hear the government is taking steps to get Canada Post workers back to work.
“It appears that the Canada Industrial Relations Board (CIRB) will have 72 hours to do its job before issuing a return to work order on Monday. This means Canada Post workers would return to work next week at the earliest,” CFIB president Dan Kelly said in a news release.
“It will be too late to save the holiday season for small businesses. “With a huge delay, it will be almost impossible for new shipments to reach Canadians before Christmas through Canada Post,” he said.
But, he added, the temporary order will help businesses desperately waiting for check-based payments from other business customers. Millions of dollars have been frozen in the mail, making it difficult for small businesses to pay their bills.
— With files from the Canadian press.
