Postal service will not be interrupted while talks continue

There were signs of progress Sunday in a contract dispute between Canada Post and the union representing 50,000 of its workers as talks resumed and the post office withdrew a threat to lock out its workers.

Canada Post issued a brief statement that said it had withdrawn its lockout notice:

Earlier today, the Minister of Employment, Workforce Development and Labour, MaryAnn Mihychuk, encouraged both Canada Post and the Canadian Union of Postal Workers to continue their discussions beyond the lockout notice.

Accordingly the Corporation has withdrawn its 72-hour notice. As a result, there will not be a lockout, which will allow both parties to focus their efforts on serious negotiations.

We are also expecting the union to honour their repeated public statements that they have no plans to issue a strike notice. Assurance from both parties that the postal system will remain open for business while we negotiate will provide the certainty that Canadians and our employees are looking for.

Canada Post is committed to negotiating agreements that are fair to our employees while providing affordable pricing and service to Canadians.

Negotiations on wages, pensions

The two sides are far apart on two major issues — wages and pensions — after  months of negotiations, including 60 days of conciliation talks and more than 30 days with federal mediators.

The union wants rural and suburban mail carriers to be paid by the hour, like urban letter carriers, rather than by how many packages they deliver.

Canada Post wants to change the pension scheme for new hires, moving them to a defined contribution plan instead of a defined benefit plan. Many private sector companies have moved to defined contribution plans because they reduce costs for companies and shift the risk for future payouts onto employees, who are no longer guaranteed a set return in retirement.

The pension proposal is one other public sector unions are watching closely. If Canada Post’s proposal is adopted, it could signal the direction the government wants to take in future talks with other unions.