Canada Post confirmed on Thursday it is laying off some striking postal workers as the nationwide work stoppage hits the two-week mark, but said the action is temporary.
The Canadian Union of Postal Workers (CUPW) posted in a bulletin to members Monday that the company was calling workers across the country to lay them off, and claimed some of the layoffs “may be more permanent.”
A Canada Post spokesperson said in a statement to Global News on Thursday that all layoffs are temporary as the strike continues, which has “significantly impacted” business at the mail carrier.
“We have taken steps to adjust our operations,” the statement said. “That means the previously expired collective agreements no longer apply and their terms and conditions of employment for employees have therefore changed.”
The CUPW bulletin, attributed to national grievance officer Carl Girouard, claimed any layoff action during a strike was a violation of the Canada Labour Code’s provisions against employer interference during legally-protected job action.
Canada Post said the temporary layoffs are allowed under the labour code, citing the expired collective agreement.
The CUPW said Monday the layoffs were “merely a scare tactic” by the company and urged members “not to panic if you receive such a call.”
Neither the union nor Canada Post provided details on the extent of the layoffs.
The dispute between Canada Post and 55,000 striking postal workers reached a standstill Wednesday after the special mediator appointed by the federal government temporarily suspended his work.
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Labour Minister Steven MacKinnon said the mediator had concluded the parties were too far apart to reach a deal on a new contract. He urged both sides to “come back to the negotiating table with a greater sense of urgency” during a meeting with company and union leaders Wednesday evening, according to his office.
A spokesperson for MacKinnon told Global News on Thursday the minister wouldn’t comment on the Canada Post layoffs as it wasn’t related to the negotiations.
However, the spokesperson said no labour complaint has been filed related to the issue.
Canada Post on Thursday said it is “considering its options to move negotiations forward with greater urgency and remains committed to negotiating new collective agreements.”
“With mounting financial losses in the billions, Canada Post requires greater flexibility to its outdated, mail-based delivery model,” the company said. “This is about the future of the postal service and growing revenues by better serving Canadians.”
The Crown corporation said last week it lost $315 million before tax in the third quarter, larger than its $290-million loss a year earlier.
The financial results put Canada Post on track for “another significant loss” in 2024, which would mark the seventh year in a row in the red.
Canada Post has previously said there’s “only so far we can go” to meet the union’s demands for wage increases and for full-time workers to deliver parcels on weekends. The company says weekend deliveries could provide much-needed growth.
CUPW has accused the company of trying to create a “gigified workplace” by using part-time contract workers for weekends instead.
“Canada Post management talks about the urgency of reaching a deal while they still sit in their offices or at home collecting their six-figure salaries and bonuses,” CUPW national president Jan Simpson said in a statement Wednesday.
“No CUPW member from Canada Post, union leadership included, are receiving a salary right now; things could not be more urgent for our side.”
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