Mediation efforts in Canada Post talks suspended as both sides are ‘far apart on critical issues’

The special mediator appointed to assist in talks between Canada Post and its striking workers has decided to suspend mediation efforts as the two sides remain far apart on critical issues.

“This pause in mediation activities will hopefully allow the parties to reassess their positions and return to the negotiating table with renewed determination,” federal Labor Minister Steven MacKinnon said in a social media post.

MacKinnon says he asked both sides to meet in his office on Wednesday.

“They will be told that, as in all disputes, they alone are responsible for the consequences of this conflict and for its resolution.”

MacKinnon added that once productive negotiations resume, the special mediator will work with both sides again.

Speaking to reporters on Wednesday, MacKinnon said the federal government has no plans to submit the matter to binding arbitration, even as he invoked that authority to resolve the port and rail disputes.

“While I would never rule out any options in the future, I would say now and for the foreseeable future that if this agreement does not come to the table, there will be no end to this labor dispute,” MacKinnon said.

When asked how to reconcile with small business owners given the government’s handling of other labor disputes in recent months, MacKinnon said the government is “acting with every possible tool in the toolbox to put an end to this dispute.”

“But this dispute belongs to the parties and the parties must find a solution.”

Dan Kelly, president of the Canadian Federation of Independent Business, says the federal government’s hands-off approach is leading to Canada Post’s demise.

“Small businesses – among the last reliable customers for Canada Post – are adopting alternatives and many will not return once the strike ends,” he wrote in a social media post.

“Canada Post employees will be most affected by this approach in the long term.”

On Tuesday, CUPW accused the Crown Corporation of misrepresenting the nature of the talks, saying they were “out of touch with the workers of this country.”

“Canada Post appears to be attempting to sway public opinion and turn Canadians against postal workers, who have consistently demonstrated a deep commitment to the country and its citizens,” the union said in a statement. “This diversionary tactic not only mischaracterizes the nature of the negotiations, but also undermines the hard work and dedication of Postal Service personnel.”

Canada Post responded by saying it is considering its options after talks on key issues critical to the future stalled. It says that, with losses of more than $3 billion since 2018 and a loss of $315 million in the third quarter of 2024, it needs a deal that focuses on the future, without adding new fixed costs that will undermine its competitiveness will hinder.

“During these negotiations, Canada Post made detailed proposals to bring more flexibility to its outdated mail-based delivery model. These changes are necessary to better compete in the parcel industry, better serve Canadians and achieve much-needed revenue growth,” Canada Post said in a statement.

“We had hoped that the union would bring much-needed urgency to the discussions. That has not been the case.”

Canada Post says the strike, now in its second week, is being felt across the country, with small businesses, charities and remote communities having to turn to competitors for deliveries.

The Crown Corporation says 10 million packages have dropped just as the lucrative Black Friday and Cyber ​​Monday sales and holiday shopping season begin.

Canada Post has offered pay increases totaling 11.5 per cent over four years and additional paid leave, while the Canadian Union of Postal Workers (CUPW) has called for a cumulative pay increase of 24 per cent over four years. CUPW also wants full-time employees to deliver parcel shipments on weekends, while Canada Post has offered to hire more part-time employees.

The last postal worker shutdown in 2018 lasted about five weeks before the federal government ordered workers back to work. CUPW employers then worked without a contract for two years, with the CUPW and Canada Post reaching collective agreements in September 2021.

Files from The Canadian Press were used for this report