Cites decline in revenue, inability to deliver mail safely
(Reuters) — Canada's national postal system has locked out its employees, saying more than a week of rotating strikes by unionized workers had cost it too much money.
Canada Post and the workers are engaged in a contract dispute complicated by questions over how the postal system can survive in an era when letter writers use email and bills are delivered and paid over the Internet.
The Canadian Union of Postal Workers (CUPW) launched a series of 24-hour strikes 12 days ago that rotated daily between different communities. The job action has already cost their employer $100 million, said Canada Post.
"The accelerating decline in volumes and revenue combined with the inability to deliver mail on a timely and safe basis has left the company with no choice but to make this decision," it said.
“We believe that a lockout is the best way to bring a timely resolution to this impasse and force the union to seriously consider proposals that address the declining mail volumes and the $3.2-billion pension deficit.”
Canada Post, which is owned by the government but operates independently as a for-profit company, had already cut mail deliveries in urban areas to three days a week in response to the labour action.
The union did not immediately respond to Canada Post's lockout but union officials have previously accused the company of attempting to provoke the federal government into intervening in the dispute.
But the government was not prepared to get involved in the contract dispute because Canada Post had not shut down the national system, according to Labour Minister Lisa Raitt.
Canada Post has offered raises to existing employees but has said its survival depends on allowing it to impose a lower wage scale on workers hired in the future.
The union said the company is profitable but refuses to listen to its proposals to deal with increasing competition by providing non-traditional services such as banking at post offices.
