Mail strike over pensions may move ahead: Canada Post

Canada Post Corp. won’t back down on defined contribution pension plan as lockout looms

Canada Post Corporation won’t back down on its proposal for a defined contribution pension plan, and has issued a 72-hour lockout notice to union workers.

“Canada Post has notified the Canadian Union of Postal Workers (CUPW) that it will be changing the terms and conditions of employment for all employees represented by the union starting Friday, July 8, 2016,” stated Canada Post Corp. in a release. “The uncertainty caused by the prolonged negotiations and the union’s strike mandate is having a negative and escalating impact on the postal service.”

Locking workers out would mean an interruption in postal service across Canada for non-essential deliveries. Those receiving unemployment benefits and CPP payments would still receive them, however.

The Union has pushed back against the company’s proposal, arguing it would implement only a 0.75% wage increase for employees. It has tabled an offer demanding wage increases of up to 3%, and has rejected the pension plan, claiming it is a two-tiered solution.

“They refused to negotiate fairly with us and now they ‘re locking the doors and will try to starve us into submission,” stated union president Mike Palecek in a release.

The company says the union’s demands would add $1 billion in costs over the term of proposed collective agreement.


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