Amid the ongoing Canada Post strike, federal Labour Minister Steven MacKinnon announced Friday that he is asking the Canada Industrial Relations Board (CIRB) to order workers back on the job if it agrees with his determination there is an “impasse” in negotiations.
If the CIRB agrees, MacKinnon says the labour relations board would order Canada Post and all employees represented by the Canadian Union of Postal Workers to resume operations and extend the terms of the existing collective agreements until May 2025.
“Not only have the parties been unable to show any progress towards an agreement, the federal mediator has now informed me that the negotiations between both parties are now, in fact, going in the wrong direction,” he said during a Friday media conference.
“So I’m here today to announce that I am applying a solution to promote conditions favorable to the settlement of this labor dispute and protect the interests of all Canadians.”
When asked about the resumption of services and whether Christmas gifts and letters could be sent, MacKinnon stated that both parties must be heard by CIRB.
He emphasized that if the CIRB reaches the same conclusion as he has that the parties are at an “impasse,” he says the board could issue a directive for workers to be back by next week.
The strike began on Nov. 15 after Canada Post workers and the employer failed to reach an agreement. The union was seeking wage increases, better pensions and improved health benefits.
In the past, federal governments have used back-to-work legislation during Canada Post strikes, including in 2018 and 2011, to resolve disputes and restore essential services.
In 2011, a postal worker strike was followed by a two-week lockout imposed by Canada Post management. However, the Conservative government passed back-to-work legislation to end the disruption. Similarly, in 2018, Prime Minister Justin Trudeau’s government passed back-to-work legislation to resolve another Canada Post strike.
MacKinnon has previously said that Ottawa is not looking to force an end to the strike and that the government would remain on the sidelines.
The postal shutdown was costing small businesses millions each day, the Canadian Federation of Independent Business said, and impacting Canadians across the country.
On Friday, the Canadian Union of Postal Workers (CUPW) released a statement saying it “denounces in the strongest terms this assault on our constitutionally protected right to collectively bargain and to strike.”
“This order continues a deeply troubling pattern in which the government uses its arbitrary powers to let employers off the hook, drag their feet, and refuse to bargain in good faith with workers and their unions,” the statement read.
CUPW added that because it is a “rapidly developing situation” it has not had time to review all the details.
“What we do know is that postal workers are being forced to return to work without new negotiated collective agreements in place,” it said, adding that it is currently reviewing the order and considering its options moving forward.
Canada Post said it is also reviewing the details of MacKinnon’s announcement to ensure it is prepared to fully participate and comply.
“While that unfolds, we look forward to welcoming our employees back to work and serving Canadians and customers. We will take all appropriate steps to support that process as quickly as possible given the direction provided to us by the Minister,” a spokesperson told Global News in a Friday email.
After nearly a month of stalled negotiations, MacKinnon said he had to intervene and use his powers to try to ensure mail operations continue.
The decision is not one he “takes lightly,” he said, adding that it is time to “call a time out.”
“Canada Post and the Canadian Union of Postal Workers remain unable to reach an agreement. Canadians are rightly fed up,” MacKinnon said.
“As the minister of labour, I have a responsibility to protect Canadians and the public’s interests while respecting the rights of the parties involved in this. That’s why I’m here to announce that I’m bringing forward a solution to promote conditions conducive to resolving this labour dispute and protect the interests of all Canadians,” he added.
The strike has impacted businesses across the nation, with Canada Post unable to process an estimated one million parcels a day. MacKinnon called the disruption “detrimental” to businesses, causing “economic harm” with each passing day.
He also noted that the strike has affected charities during the holiday season, as fundraising efforts have been “jeopardized” by the ongoing dispute.
The idea now is to extend the terms of their existing collective agreements until May 22, 2025.
During this time, he said an Industrial Inquiry Commission (ICC) would be established, with William Kaplan, an arbitration and mediation lawyer, appointed as the commissioner.
“The commissioner will be tasked with examining the structural issues preventing the resolution of the current labour dispute. The IIC will be required to submit a report to me and the parties outlining their findings and recommendations by May 15, 2025,” MacKinnon said.
“The review could provide the basis of a path forward on how to amend the collective agreements and clarify the structures, rights and responsibilities of the parties in collective bargaining. The inquiry will have a broad scope, as it will examine the entire structure of Canada Post from both the customer and business model standpoint. Considering the challenging business environment now facing Canada Post.”
The chair of Canada Post warned in August that the Crown corporation is at a “critical juncture” and its financial situation is “unsustainable.”
The Crown corporation’s latest annual report used similar language, noting it has recorded “significant” annual losses since 2018. Last year’s loss was the second-largest on record, at $748 million.
The Canadian Federation of Independent Business (CFIB) said Friday that it is relieved to learn the government is taking action to get Canada Post workers back on the job.
“It appears the Canada Industrial Relations Board (CIRB) will have 72 hours to do its work before issuing a back to work order on Monday. This means Canada Post workers would be back on the job sometime next week at the earliest,” CFIB president Dan Kelly said in a media release.
“This will be too late to salvage any of the Christmas holiday season for small businesses. With a massive backlog, it will be nearly impossible for any new shipments to make it to Canadians before Christmas through Canada Post,” he said.
But, he added, the temporary order will help businesses that are desperately waiting for cheque-based payments from other business customers. Millions of dollars have been frozen in the mail making it difficult for small firms to pay their bills.
— With files from the Canadian Press
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