Mail Volumes Drop as much as 50 per cent as Work Stoppages Impact the Postal System
Mail volumes at Canada Post have fallen as much as 50 per cent since the union started rotating strikes on June 3rd. This decline in volume comes at a time when the company is already struggling to address significant business challenges.
Canada Post does not understand why the Canadian Union of Postal Workers (CUPW) would willingly damage the business with strike action when the company has put a strong offer on the table.
Specifically, the company has proposed the following for current regular employees:
*Annual wage increases that will bring the top wage rate to $26 an hour
*Continued job security
*No changes to a Defined Benefit pension plan
*Comprehensive medical benefits for employees and retirees
*Generous vacation leave that gives employees up to seven weeks off each year
Canada Post has proposed a new wage and benefits package for employees hired in the future. This includes a starting wage of $19 an hour that rises to $26 an hour over seven years; up to six weeks vacation; and fully indexed defined benefit pension by age 60. The package for new employees is still superior to the wages and benefits offered by competing logistic and delivery companies. Equally important, these changes will help Canada Post manage labour costs that take-up two-thirds of its revenues.
The most recent decline in volume triggered by strike action comes at a very difficult time. Mail volumes at Canada Post have fallen 17 per cent per address since 2006 and the company is struggling with a pension plan solvency deficit of $3.2 billion.
Canada Post is a Crown Corporation whose operations are funded by the revenues generated by its products and services, not taxpayer dollars. It has a mandate from the Government of Canada to remain financially self-sufficient. The company is taking steps during this round of labour negotiations to ensure that it can continue to fulfill its mandate and provide Canadians with the postal service they expect.
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