Mail could begin moving again in Canada as early as next week after the federal government moved Friday to end the nearly month-long work stoppage at Canada Post.
Labour Minister Steven MacKinnon said he’s referred the dispute to the Canada Industrial Relations Board, with the aim of ordering the nearly 55,000 workers back to work and extending the current collective agreement until May 22, 2025 — if the board determines a deal isn’t within immediate reach.
In the meantime, MacKinnon said he will appoint an industrial inquiry commission to look into the bargaining issues and come up with recommendations by May 15 on how a new agreement can be reached.
“We’re calling a time out,” MacKinnon told reporters today at a press conference in Ottawa.
“Suffice to say positions appeared to have hardened and it became clear to me we were in a total impasse.”
A federally-appointed mediator withdrew themselves two weeks ago, saying at the time the two sides were too far apart to make a deal.
MacKinnon said since then, the negotiations have been “going in the wrong direction.”
MacKinnon called the decision a creative solution by not sending the matter directly to binding arbitration — as the government did in recent labour disputes with Canada’s railways and ports.
He said this doesn’t mean a deal will be automatically in reach by May, but hopes the inquiry can show a path forward that works for both Canada Post and its workforce.
“There are major structural changes in that industry that have to be accounted for,” he said.
“There are workers aspirations in that industry that have to be accounted for. Those have proved to be interests that are tough to reconcile. So I’m looking to try and triage those issues.”
The postal workers union was quick to denounce the decision, saying the move is “an assault” on the right to collective bargaining.
“This order continues a deeply troubling pattern in which the government uses its arbitrary powers to let employers off the hook, drag their feet, and refuse to bargain in good faith with workers and their unions,” the Canadian Union of Postal Workers said in a statement.
The Canadian Federation of Independent Business however welcomed the move. It estimates small businesses have been losing a combined $100 million every day.
“This will be too late to salvage any of the Christmas holiday season for small businesses,” CFIB president Dan Kelly said in a statement.
“With a massive backlog, it will be nearly impossible for any new shipments to make it to Canadians before Christmas through Canada Post.”
Kelly said the resumption of mail will help businesses waiting for cheque payments from customers. Such a hold on payments, he said, have made it hard for small businesses to pay their bills.
MacKinnon also acknowledged the effect on small businesses and remote communities, as well as on passport deliveries, immigration paperwork, and health cards.
He said there are 50,000 permanent resident cards yet to be mailed, 190,000 passports, and the Canada Revenue Agency is holding more than 1.65 million pieces of secure correspondence.
This report by The Canadian Press was first published Dec. 13, 2024.