Canada Post Announces Layoffs of Postal Workers Amid Ongoing Strike, but says it’s temporary

Canada Post confirmed on Thursday that it is temporarily laying off some of its striking workers as the nationwide work stoppage reaches its two-week mark. However, the company emphasised that the layoffs are only temporary.

The Canadian Union of Postal Workers (CUPW) posted a bulletin informing members that Canada Post was laying off workers nationwide. The union raised concerns, claiming that some layoffs could be permanent.

A spokesperson for Canada Post responded, stating that all layoffs were temporary as the strike continues to impact the company’s operations significantly. The spokesperson added that the expired collective agreements no longer applied, meaning that the terms and conditions of employment for affected employees have changed.

CUPW has accused Canada Post of violating the Canada Labour Code by laying off workers during a legally protected strike. However, Canada Post defended its actions, asserting that temporary layoffs are permitted under the labour code due to the expired collective agreement.

The union dismissed the layoffs as a “scare tactic,” urging its members not to panic if they receive layoff notices. Both Canada Post and CUPW have not disclosed the specific extent of the layoffs.

The labour dispute involving 55,000 striking postal workers reached an impasse on Wednesday after a special mediator appointed by the federal government temporarily suspended his efforts. Labour Minister Steven MacKinnon stated that the mediator had concluded that the two sides were too far apart to reach a new contract and urged both parties to return to the negotiating table more urgently.

MacKinnon’s spokesperson declined to comment on the layoffs, stating that the issue was unrelated to the negotiations, and confirmed that no labour complaint had been filed regarding the layoffs.

Canada Post, facing financial difficulties, has stated that it is exploring options to move negotiations forward more urgently. The Crown corporation has reported losses in the billions, with a $315 million pre-tax loss in the third quarter, a more significant loss than the $290 million recorded the previous year.

The company warned that it is on track for another significant loss in 2024, marking a seventh consecutive year in the red.

In response to the ongoing strike, Canada Post has expressed the need for greater flexibility in its mail-based delivery model, mainly through weekend deliveries, which could help generate much-needed revenue. The company has also stated that meeting the union’s demands for wage increases and full-time workers delivering parcels on weekends has proven challenging.

CUPW has accused Canada Post of trying to create a “dignified workplace” by relying on part-time contract workers to handle weekend deliveries. Union president Jan Simpson criticised Canada Post management for a lack of urgency, pointing out that union leaders and members have not been receiving salaries during the strike.

As the dispute continues, both sides remain far from a resolution, and the impact on Canada Post’s operations and workers will likely deepen.