‘A critical time’: Why Canada Post workers are set to strike again and what it means for businesses

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The two parties returned to the bargaining table on April 30 as well, but to no avail.

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What about the report from the IIC?

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Aside from the negotiations, an Industrial Inquiry Commission was also formed by the federal government to review the key issues discussed between the two groups.

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The report, which was written by the commission’s head, William Kaplan — an arbitration and mediation expert — was released on May 16 and said that Canada Post was “effectively insolvent or bankrupt” and that it needed to undergo a series of changes to reverse its losses.

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It recommended that Canada Post phase out its daily door-to-door letter-mail delivery service for individual addresses. It also said that the corporation needed to be able to hire part-time employees to deliver parcels on the weekend and assist with volumes during the week.

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“The Government of Canada can decide to subsidize Canada Post’s growing deficits indefinitely. Or necessary changes can be made to modernize the way Canada Post goes about its business,” the report said.

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The report also stated a number of reasons behind Canada Post’s downfall. They include the rise of parcel delivery competitors, certain work rules that restrict efficiency, such as not being able to assign existing employees with additional work once they have finished their assigned tasks.

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While Canada Post welcomed the findings of the report, CUPW said that it was skewed “heavily” in favour of Canada Post’s recommendations and disagreed with it.

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What will happen to parcels and mail if there is a strike?

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“In the event CUPW initiates rotating strike activity, Canada Post intends to continue delivering in unaffected areas while working to reach negotiated agreements,” the company said in a statement issued on Monday. Canada Post will work to minimize service disruptions, but customers may experience delays.”

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In case of a national “labour disruption” though, mail and parcels will not be delivered and no new items will be accepted until the “disruption” is over, the postal service said.

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Even if workers do go on strike, the union and the corporation have agreed to continue the delivery of socio-economic cheques, which are the payments made by the government to select groups and individuals.

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“The agreement ensures government financial assistance delivered by mail will reach seniors and other Canadians who rely on it,” Canada Post said.

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What does a new strike mean for businesses?

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More than three-quarters of small business owners rely on Canada Post. The strike in November came just ahead of the holiday season and cost small business companies more than $1 billion in lost revenue and sales, according to the Canadian Federation of Independent Business (CFIB), which has about 100,000 members.

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If no deal is reached between the two parties, the impact on small businesses will be significant, Dan Kelly, the organization’s president said in a statement on May 15.

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“We are at a critical time for the country with small businesses grappling with massive uncertainty created by trade tensions with the United States and China,” he said. “Small business confidence in the economy is at a near historic low. We cannot afford another threat to our economic stability.”

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The group urged both parties to work through their differences and avoid “any disruption that would throw the operations of hundreds of thousands” businesses in “further jeopardy.”

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“If an agreement cannot be reached, government needs to use its legislative authority to maintain operations while it implements emergency reforms to address the long-term future of Canada Post,” said Kelly.

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