The labor conflict is bogged down in Canada Post. Following the rejection of the employers’ offer by the postal union, a decision that is more of injured pride than rationality, the parties are back to square one. The future of the federal society, afflicted by losses, is not brilliant.
Experts consider the holding of a new strike unlikely following the rejection of the 69 % employers’ offer by members of the Syndicate of Workers and Post Workers (STTP). The union front is not united enough to organize an impact strike. The last work stoppage, in December 2024, also left a bitter memory to service users. They will not have much patience for new disturbances.
The Federal Minister of Employment and Families, Patty Hajdu, wanted to submit the employers’ offer to the vote, to the chagrin of the union, who sees it as an attack on free and voluntary negotiations. The offer provided for salary increases of around 13 % over four years and the hiring of part -time workers to stabilize operations. Rather, the union demanded 19 % over four years and it closed the door to part -time.
The return to the uncertainty box will mine the already fragile reputation of Canada posts. Companies, scalded by ruptures in the continuity of service following the one -month strike in 2024, will not remain their arms crossed. Supporting survey, the Canadian Federation of the Independent Company estimates that two out of three companies could definitively abandon the Canada Post Services if a new strike occurs. They will see elsewhere, at Fedex, Purolator and others. And guess what? They will find better service or service equivalent to competitive prices.
Recoil is not an option for Canada Post. The company is essentially bankrupt, according to the conclusions of the report of an external commissioner, William Kaplan. In his exhaustive document, he recommended put an end to daily home delivery, to set up a conversion strategy to community postal boxes and to add part-time factors, the weekend, for the delivery of packages.
For the STTP, the use of part-time work on weekends is a major irritant, even if these positions will come with competitive wages and benefits. The Kaplan report does not fail to underline the responsibility of the union in the failure of the talks, because of its insistence to defend the status quo. It is an unbearable blockage.
Since 2018, Canada Posts has accumulated an operating deficit of $ 3.8 billion. There are only government agencies, especially on the federal scene, to also candidly accept such a waste. Why care about the optimization of business processes and the damage to budgetary balance? It is so simple to pass the invoice to the taxpayer, by increasing service costs or taxes, or better, to shove the problem for future generations by digging a deficit over deficit.
There are certainly good reasons for a government to increase the liabilities in moments of turbulence or economic crisis. By stimulating the economy, the state can avoid worsening problems and get the catalyst for revival. This scenario certainly does not apply to Canada Post.
The organization has been struggling for decades to adapt to the erosion of traditional mail in a digital company, in which email and electronic correspondence have completed the power of the stamp. Posts Canada must deliver fewer letters to more addresses, without its union wanting to accept changes necessary for the organization of work. Private competitors, who won the state -owned market share in the delivery of packages, did not let the heaviness dictate their business strategies. And they harvest the profits from consumers who are looking for the best service at the lowest cost.
The cause of Canada posts is not lost. In his report, Commissioner Kaplan rather sees a way to modernization, in order to “preserve Canada Posts as a vital national institution”. This colossal work will not be able to start as long as the parties remain on their positions. The moment is approaching when it will take a forced resolution to the conflict, at the risk that the delay in the face of competition becomes too large and that modernization efforts be made in vain.