November 14, 2024
Latest Developments: Canada Post began a strike on November 15, 2024, with no end in sight as of when this article was last updated on November 28, 2024.
As Canada Post and the Canadian Union of Postal Workers (“CUPW”) continue to struggle to settle the terms of a new contract, the possibility of a work stoppage looms large. A strike or lockout could potentially impact thousands of Canadians who rely on the postal system as the busy holiday season approaches.
The Terms
Collective agreements in place between Canada Post and CUPW expired on December 31, 2023, for rural and suburban carriers and on January 31, 2024, for urban carriers. Tuesday morning tensions escalated as CUPW, representing over 55,000 workers across the country, issued a 72-hour strike notice putting workers in a position to walk off the job as early as Friday morning. Their demands throughout these negotiations include wage increases, improved staffing provisions, better group benefits plans, and stronger protections for temporary workers.
Canada Post insists that its latest offers are fair given the financial challenges the postal service has faced in recent years. Canada Post reported a loss of $490 million in the first half of 2024 and has accumulated losses exceeding $3 billion since 2018. Canada Post has stated that its goal throughout the negotiation process has been to reach a deal without resorting to labour disruptions. However, Canada Post responded to the union’s strike notice by issuing a 72-hour lockout notice later the same day. Canada Post has also advised CUPW that unless a new deal is reached, the current collective agreements will no longer apply as of Friday and Canada Post will make adjustments to meet its operational needs as required.
Rotating Strikes
From a labour perspective, rotating strikes can be an effective tool to apply pressure when negotiations reach an impasse. Designed to create targeted disruptions, rotating strikes focus on key cities and slow down operations without completely halting them. These strikes – typically lasting 24 hours at a time – are often a bargaining tactic meant to show resolve without causing long-term harm to the public. The underlying message is clear: the union is serious about their demands and a full strike is always a looming threat unless a resolution is reached.
Rotating strikes have been utilized by CUPW in past labour disputes, most notably in 2018. Canada Post has made it clear that in the event of a rotating strike by CUPW, they intend to continue operations as best as possible to minimize disruptions to Canadian businesses and consumers.
Lockouts
If strikes are seen as an effective tool in the arsenal for unions to overcome stalled negotiations, the employer’s answer is a lockout. When an employer implements a lockout, employees are prevented from attending the workplace. Operations slow down and could potentially come to a complete halt in some areas. Lockouts can create internal pressure on a union to resolve a dispute if workers are prevented from earning a living for an extended period of time.
A lockout gives the employer some measure of control over the timing and extent of operational disruptions rather than waiting to see where a rotating strike may be implemented next. If the employer’s goal is to force government intervention to end the dispute, a lockout can be an effective tool to concentrate disruption and maximize the public’s demand for government action.
Government Solutions to Mitigate the Effects of a Strike or Lockout
The federal government has been closely monitoring the situation, with Labour Minister Steven MacKinnon emphasizing that Ottawa’s role is to support collective bargaining and keep the dialogue going.
In the background, however, the possibility of back-to-work legislation looms. In 2018, during a similar dispute, the federal government intervened with legislation that forced postal workers back to work despite resistance from the union. Rotating strikes had been employed by CUPW for nearly a month when the government introduced legislation to end the strike. Employees were back on the job but continued to work without a new deal until a collective agreement was ratified nearly a year later. Back-to-work legislation was also used to end postal strikes in 2011, 1997, and 1987. While a back-to-work order is a potential option for the government, it is a highly controversial step, often seen as undermining the bargaining power of unions.
Another option at the federal government’s disposal should be familiar to those who observed other Canadian labour disputes this year. Most recently, the Labour Minister put an end to job action at ports in Vancouver and Montreal by directing the Canada Industrial Relations Board (“CIRB”) to order binding arbitration for the employers and the unions involved. Similar orders for binding arbitration were issued in response to the railway labour dispute and the bargaining impasse between WestJet and the union representing its aircraft mechanics. Strikes and lockouts are not legally permissible while the CIRB’s orders are in place and employees continue to work under the terms of the most recently expired collective agreements until new collective agreements are ratified. While WestJet and the mechanics’ union eventually came to terms on a new agreement, progress has stalled in the railway dispute. Dates for several rounds of mediation and binding arbitration have been set in the new year while the union has launched a legal challenge to the directives issued by the Labour Minister and the CIRB. It appears that the union representing dock workers in Montreal is also planning a legal challenge to the Labour Minister’s directive.
Collective Bargaining
The right to collective bargaining is protected by the freedom of association in the Canadian Charter of Rights and Freedoms. Effective collective bargaining requires both the employer and the union to reach terms on a freely-negotiated collective agreement. Strikes and lockouts are tools both parties have at their disposal to exert leverage in negotiations and are recognized as a vital component of collective bargaining.
While the federal government expresses support for the collective bargaining process, it faces pressure from businesses and individuals that rely on the postal service as a vital part of the supply chain. Critical goods may be held up if job action results in disruption to Canada Post’s operations. Alternative carriers may be available, but increased demand will no doubt drive up costs which ultimately will be passed on to consumers. The government can step in to help prevent this from happening, but any form of government intervention could render its past statements backing collective bargaining as mere platitudes.
If you would like more information about how the Canada Post labour dispute is developing, or if you have any questions about labour relations, please contact a member of the Carbert Waite Employment & Labour Law Group.
Author
Stephen Torscher
Partner and Employment and Labour Law Group Co-Chair
T: 403.705.3660
E: [email protected]