Canada Post extremely disappointed with CUPW’s response to its offers
Dear Canada Post customer,
I am writing to update you on our negotiations and advise you that there can be no legal work disruption before the expiry of a 72-hour notice, and one has yet to be filed.
On Saturday, June 25, 2016, we tabled offers in our separate negotiations with the Canadian Union of Postal Workers (CUPW-Urban and CUPW-RSMC), which represent our delivery agents and plant employees. Our offers were designed to help bring a quick resolution to the negotiations and end the uncertainty that is negatively impacting our customers and our employees. Our offers included modest and manageable wage increases for all employees and no changes to the pension for all employees in the plan.
As you can read in our public statement, we are extremely disappointed with the response from CUPW. LateFriday evening, CUPW tabled offers that would add at least $1 billion in new costs over the term of a new collective agreement while rejecting the Corporation’s approach to address the long-term issues with the employee pension plan.
Rather than saddle customers with more than $1 billion in new costs, Canada Post continues to remain at the table to negotiate an agreement that is reasonable and affordable. In the event of a full disruption, Canada Post will not operate, deliver or accept new items. We will keep you updated on our progress.
Canada Post Corporation
On Friday we presented CPC with our Global Offers for both the urban and RSMC collective agreements. As a result, we will not be servicing our 72-hour notice. Therefore, there will be no industrial action prior to July 6th.
06/30/2016 – The APWU expects a decision from Arbitrator Stephen B. Goldberg by mid-July, reports President Mark Dimondstein.
“We had hoped to have a ruling by now, but Arbitrator Goldberg has informed the union and management that he is still working on his decision,” Dimondstein said.
“I know that union members are eager to hear the outcome of our struggle for a good contract – as am I – but we will have to wait a little longer.”
More than three months of negotiations began in February 2015 and were followed by mediation and arbitration hearings.
During 18 days of hearings that focused primarily on the economic provisions on the new contract, the union and management presented their positions, called witnesses, submitted evidence, and offered rebuttals.
The three-member panel of arbitrators began its deliberations on May 4. The panel is comprised of a union-appointed arbitrator, a management-appointed arbitrator, and Neutral Arbitrator Stephen B. Goldberg, who will determine the outcome.
For more information on the negotiations and the fight for a good contract, click here.
CPC spokespeople are always talking about the deficit in the Canada Post Pension Plan. But they never mention that the plan also has a huge surplus. And while the surplus is growing, the deficit is decreasing.
The Facts CPC Never Mentions
Here are some of the facts you will find in the 2015 Canada Post Pension Plan Report to Members:
In 2015 the going concern surplus increased to $1.2 Billion from $500 million.
(See page 2 of the Report.)
The actual pension surplus for 2015 was $2.7 Billion. (page 18)
The solvency deficit was reduced from $6.8 Billion to $6.1 Billion. (page 17)
The solvency deficit (market value) was reduced from $6.8 Billion to $5.9 Billion.
Solvency only triggered by Plan Termination
The solvency deficit only comes into play if a pension plan is terminated. Since the federal government has ruled out privatization from the mandate of the Review Committee, there is no reason to believe the plan will be terminated. Solvency deficits are caused by low long term interest rates. Should (or when) interest rates go up by only 1%, the solvency issue will disappear entirely (see page 20).
This is why CUPW and all of the other postal unions do not believe there is any reason to change the pension plan especially given that it is running a $2.7 Billion surplus.
CPC Recognizes a Pension Plan is important – for some.
In their pamphlet attempting to sell their global offer, CPC said the following to regular Urban and RSMCs who are covered by the defined benefit pension plan: “We understand the importance of your pension. We get that it brings you peace of mind.” Yet, their proposal calls for all temporary employees and OCREs to be excluded from the pension and only receive a low value defined contribution plan. So much for caring about the peace of mind of thousands of their employees.
We demand that all employees be eligible for the defined benefit pension plan.
We all deserve “Peace of Mind”
To see the 2015 Canada Post Pension Plan Report to Members go to:
OTTAWA – Postal workers are asking Canada Post management for a two-week extension on the cooling-off period that would otherwise entail a termination of their contract on July 2nd.
At that point, the union says Canada Post might either lock its workers out or try to force a walkout through punitive changes to their working conditions.
“We are asking management to give us a chance, to give the public review a chance, to keep sitting down with us at the bargaining table, and give the workers a chance to get a fair deal,” said Mike Palecek, national president of the Canadian Union of Postal Workers.
The profitable Crown Corporation has been talking tough with its workers, despite being in its 20th profitable year out of the past 22. Postal workers are fighting exorbitant demands for cutbacks and concessions that they say just aren’t reasonable in light of the company’s success.
“Mr. Chopra and his executive team are getting their bonuses every year,” said Palecek, referring to the Harper-appointed President and CEO who has refused to resign since the Liberals took office. “We don’t understand why he needs to squeeze so much out of the people who are making the profits for him.”
If Canada Post management refuses to extend the cooling-off period, Palecek says his union still aims to keep negotiations going.
“We’re concerned that a labour dispute will taint the outcome of the very important review that the Liberals are conducting,” said Palecek. “We’ll do everything we can to avert that.”
OTTAWA, June 27, 2016 /CNW/ – Labour negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW) continue. Talks have been ongoing since late 2015, and the parties are now in the final stretch. No legal work disruption can occur until July 2, 2016. Details of the offers are highlighted in the background section below.
While there is still time to reach new agreements, a legal work disruption could occur as early as July 2, 2016. We understand the impact a work disruption would have on customers and are therefore doing everything possible to reach a negotiated settlement quickly. While a labour disruption remains a possibility, we are asking customers to take precautions. Continue reading →
OTTAWA, June 10, 2016 /CNW/ – Postal workers are welcoming the return of proactive pay equity legislation recommended by the Special Committee on Pay Equity report It’s Time to Act. However, they say Canada Post should be acting right now at the bargaining table to address the glaring discrepancy between its urban and rural mail carriers.
“We are currently struggling to negotiate equal pay for the work of equal value done by our female-dominated rural and suburban mail carrier members. These workers meet the Committee’s definition of a female-dominated group. 70% of rural mail carriers are women and they are getting a worse deal than the majority male urban letter carriers, even though their skills, efforts, responsibilities and working conditions are similar,” said Mike Palecek, national president of the Canadian Union of Postal Workers.
Canada Post is mentioned disapprovingly in the Committee’s report as an employer that has used the current complaints-based process to fight pay equity all the way to the Supreme Court. Although the Crown Corporation eventually lost, those affected by wage discrimination had to wait 30 years for their pay equity settlement.
“Proactive pay equity legislation should make establishing this basic human right much less arduous, expensive and painful for all involved,” said Palecek.
However, the union is determined to keep pay equity for its rural and suburban carriers on the bargaining table while the government ponders the Committee’s recommendations. It says the recommendation to table legislation within 18 months is too long to wait and that the government should act immediately to address wage discrimination. The union has already written to Justin Trudeau twice on the issue and has yet to receive a response.
“Several witnesses in that report say that ‘justice delayed is justice denied.’ That’s why we have to fight for justice for these workers now,” said Palecek.
In the past, CUPW has broken ground for progressive gender-based policies, including the right for federal employees to paid maternity leave, for which postal workers walked picket lines in 1981. It has also negotiated employer-funded childcare programs for its members, including members with children with special needs.
For the report of the Special Committee on Pay Equity, visit
Union leaders will be recommending acceptance of a one-year, no-strings-attached pay increase achieved during national negotiations with Royal Mail.
The proposal, which has met with the approval of the union’s industrial executive, is fully consolidated and will lift basic pay by 1.6 per cent for all CWU-represented grades within the business apart from Romec and Quadrant, whose pay awards are negotiated separately.
Backdated to April 4th 2016 for weekly-paid staff and to April 1st 2016 for monthly-paid, the increase flows through to all pay supplements, skills and unsocial attendance allowances, London Weighting, Scottish Distant Island allowance, overtime and scheduled attendance rates and matches the March 2016 retail price index (RPI), keeping members’ earnings up with the cost of living.
Acting deputy general secretary (postal) Ray Ellis, said: “The view of the pay negotiating team, endorsed by the postal executive at its meeting yesterday, is that the offer represents an acceptable conclusion to the 2016 pay talks that meets the policies we have adopted for a clean, one-year, no-strings deal.
“The offer will therefore be recommended for acceptance in an individual members’ ballot, which opens on June 9th and closes on the 30th.”
You are reading the latest Contract Update produced and distributed by the NPMHU during the course of 2016 negotiations.
These updates, along with the Union’s magazine and monthly bulletins, will keep mail handlers throughout the country informed and involved in the issues raised during this round of bargaining. As expected, a lot happened during the final days of this year’s regular bargaining period. The Postal Service and NPMHU negotiated right up until the clock struck midnight on Friday, May 20.
Despite these efforts, however, an agreement on all of the outstanding terms and conditions of employment could not be reached before the deadline. Continue reading →