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Canada Post/ CPAA dispute resolved; CUPW negotiations at standstill

August 18, 2016   ·   0 Comments

Although negotiations are at a standstill between Canada Post and the Canadian Union of Postal Workers (CUPW), arbitration has ended the debate between the Crown corporation and the Canadian Postmasters Assistants Association (CPAA).

Shortly before noon Monday, Canada Post announced that Michel Picher, the arbitrator assigned to assist in the renegotiation of CPAA collective agreements, selected Canada Post’s proposal during the final-offer selection process.

“Canada Post is appreciative that the arbitration process efficiently expedited the resolution of difficult bargaining issues between us and the CPAA,” said Deepak Chopra, CEO and Canada Post President.

There were several key changes under this new collective agreement, including a defined contribution pension plan identified for new employees represented by the CPAA. This defined contribution pension plan applies to all newer employees at Canada Post apart from those represented by CUPW, and exists for any management and exempt employees hired after January 2010.  For those under the Public Service Alliance of Canada/Union of Postal Communications Employees (PSAC/UPCE), which represent administrative and technical employees, this change is applied to those hired after May 2014.

The press release said the plan was also negotiated with the Association of Postal Officials of Canada (APOC) for supervisors and employees in supervisory support groups who were hired after February 2015.

This new agreement with the CPAA will also see changes in entry-level wages, which Canada Post says have been kept in line with changes negotiated previously with other bargaining units.

“There is also an increase in employee contributions for post-retirement benefits, from 25 per cent to 50/50 cost sharing with the employer,” added Canada Post in the news release. “The wages and benefits package includes modest wage increases and remains competitive while reducing future costs through changes for new employees.”

According to Canada Post, reducing future costs is necessary for the company to respond to the changing needs of Canadians regarding postal services, while still respecting Canada Post’s mandate to be financially self-sustainable.

Things have not been going nearly as well when it comes to the impasse between Canada Post and CUPW.

On Canada Post’s website, Mark MacDonell, General Manager of Labour Relations for Canada Post, wrote an update identifying the things that make arbitration attractive, and addressed concerns with the CUPW talks.

“Sadly, two negotiations between Canada Post and the Canadian Union of Postal Workers are dragging on and the parties are far apart,” wrote Mr. MacDonell on Tuesday. “The possibility of a work disruption is very hard on customers and our employees. The uncertainty is having a negative impact on our volumes and revenue. It doesn’t have to be this way. Arbitration could resolve the current impasse with CUPW relatively quickly, and it would incept both parties to be realistic.”

He added that final offer selection is a form of binding arbitration that compels both parties to be reasonable and realistic, as well as to prove what they say. In final offer selection, the arbitrator could select some of the proposals from CUPW and some from Canada Post, meaning each party would win some demands, lose others, and have others which may be adjusted.

“That’s give-and-take, and that’s the nature of any negotiations,” said Mr. MacDonell. “Arbitration strikes an acceptable balance between the employer and the union. We’re good with that to resolve this current impasse.”

Canada Post acquiesced to the Minister of Employment, Workforce Development and Labour’s request to agree to binding arbitration, but CUPW rejected the request.

“We are still willing to go to arbitration,” added Mr. MacDonell. “The minute CUPW agrees to binding arbitration, our customers would breathe a sigh of relief. They’d have a guarantee of uninterrupted postal service… Our hard-working and dedicated employees represented by CUPW-Urban and CUPW-RSMC would breath easier, too.”

CUPW’s strike mandate, allowing its leadership to call a strike, is nearing its end, despite no movement in negotiations. The mandate expires next Thursday, August 25, and progress currently seems hopeless.

Currently, both sides are blaming the other for the stall, with the union telling CBC News that they fear the Crown corporation is trying to run out the clock on the mandate. If the mandate expires, Canada Post could ‘unilaterally impose changes in working conditions’, leaving the union without an ability to respond.

“We’re concerned Canada Post is just trying to wait us out,” Mike Palecek, CUPW president, told CBC Tuesday. “We obviously can’t leave ourselves in a position where we’re not covered by a strike mandate, because that would give management the upper hand, and we wouldn’t be able to respond to the actions that they might take.”

Although the union could ask postal workers to take another strike vote, the process is expensive and time consuming, and the new mandate would last only an additional 60 days.

“We want to keep negotiations going and we’re looking at ways that could happen,” explained Mr. Palecek. “Those discussions will happen at the bargaining table. We’ve said from the outset that our intent here isn’t a labour dispute. We want a negotiated collective agreement and that’s still our goal.”

– With files from CBC News

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