Ottawa, Ontario — The flow of mail in Canada is expected to resume as soon as next week, following a significant decision by the federal government to address an ongoing work stoppage at Canada Post that has persisted for nearly a month.
Labor Minister Steven MacKinnon made an announcement on Friday indicating that he has referred the labor dispute to the Canada Industrial Relations Board. This move aims to facilitate the return of about 55,000 postal workers to their duties while extending the current collective agreement through to May 22, 2025, should the board conclude that a resolution is not imminent.
“Canadians are rightly fed up,” MacKinnon remarked, acknowledging the growing frustration among citizens as the complicated negotiations linger on.
With the Christmas season just around the corner, the progress on negotiations appears stagnant. Initially, MacKinnon had resisted calls for government intervention, arguing that resolving the dispute was ultimately the responsibility of both parties involved. However, he shifted his stance, expressing concern for the hardships faced by Canadians, particularly small business owners, residents of remote regions, and Indigenous communities who are adversely impacted by the ongoing strike.
The central issues in contention concerning the strike include salary adjustments, job security, and staffing for a proposed weekend delivery service. MacKinnon noted the structural challenges facing Canada Post, such as a significant decline in letter volumes and intense competition in the parcel delivery market.
“There are major structural changes in that industry that have to be accounted for. There are worker aspirations that have to be accounted for,” MacKinnon said, highlighting the complexity of reconciling the interests of both the business and its workers.
Previously, Prime Minister Justin Trudeau’s Liberal government intervened in a different labor dispute involving the two main railroads in the country, leading to an arbitration process that concluded in a settlement.
In a strong response to the government’s actions, the Canadian Union of Postal Workers condemned this interference, asserting that it impinges upon their constitutionally protected rights to negotiate collectively and strike. The union expressed their concerns over what they perceive as a recurring trend of governmental overreach benefiting employers at the workers’ expense.
Meanwhile, the Canadian Federation of Independent Business has welcomed the government’s decision, estimating that small businesses have been collectively losing around CAD 100 million (approximately USD 70 million) daily during the work stoppage.
CFIB President Dan Kelly remarked that while the government’s intervention may come, it likely won’t be in time to salvage the seasonal opportunities that Christmas presents for small businesses. He emphasized the enormous backlog currently faced by Canada Post, making it nearly impossible for any new shipments to reach Canadians before the holiday season arrives.