The postal strike in Canada continues as the government refuses to intervene

On By Pranco

The Canadian government has announced that it will not intervene in Canada Post’s ongoing labor dispute despite the approaching holidays. Labor Minister Steven MacKinnon said Wednesday that binding arbitration is not being considered, citing fundamental issues surrounding the transformation of Canada Post’s business model.

The strike, which began on November 15, has halted mail and package deliveries across the country, affecting millions of Canadians and businesses. About 55,000 postal workers are on the picket line demanding fair wages and better working conditions.

MacKinnon highlighted the unique challenges Canada Post faces, noting that the company must transition from a letter-focused model to one that delivers packages profitably. He explained that conventional arbitration would struggle to address the different views currently at the negotiating table.

The Minister of Labor summoned both sides to his office after a special mediator reported that the two sides were too far apart on critical issues for the mediation to be effective. MacKinnon emphasized that the responsibility for resolving the dispute lies with the parties involved.

READ: Seven years of losses: Canada Post reports a loss of $315 million in the third quarter of 2024

Canada Post reported a pre-tax loss of $315 million in the third quarter of 2024, which was attributed to a 9.6% decline in parcel volume compared to the same period in 2023. These financial pressures complicate negotiations as it company strives to implement cost-saving measures and increase flexibility in the delivery model.

With the strike entering its third week and no immediate resolution in sight, businesses and consumers are preparing for significant disruption during the crucial holiday shopping season. The government’s stance on non-intervention marks a departure from its approach to recent labor disputes in the port and rail sectors, where binding arbitration has been used to resolve conflicts.

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