Mediation efforts in Canada Post talks suspended as both sides ‘far apart on critical issues’

The special mediator appointed to assist in talks between Canada Post and its striking workers has decided to suspend mediation efforts, saying the two sides remain far apart on critical issues.

“This pause in mediation activities will hopefully permit the parties to reassess their positions and return to the bargaining table with renewed resolve,” Federal Minister of Labour Steven MacKinnon said in a social media post.

MacKinnon says he has requested both parties meet in his office on Wednesday.

“They will be told that, as in all disputes, they alone are responsible for the consequences of this conflict, and for its resolution.”

MacKinnon added that as soon as productive bargaining resumes the special mediator will re-engage with both parties.

Speaking to reporters on Wednesday, MacKinnon said the federal government is not planning to send the matter to binding arbitration even though he invoked that authority to resolve the ports and rail disputes.

“While I would never rule out any option in the future, what I would say right now and for the foreseeable future is if this agreement does not come together at the table, there will be no end to this labour conflict,” MacKinnon said.

Asked how he can reconcile with small business owners, given how the government has handled other labour disputes in recent months, MacKinnon said the government is “acting with every possible tool in the tool kit to bring an end to this dispute.”

“But this dispute belongs to the parties, and the parties need to find a solution.”

Dan Kelly, the president of the Canadian Federation of Independent Business, says the federal government’s “hands-off approach” is leading to the demise of Canada Post.

“Small businesses – among the last reliable customers for Canada Post – are adopting alternatives and many won’t return when the strike is over,” he wrote in a social media post.

“Canada Post workers will be hit the hardest by this approach in the long term.”

On Tuesday, CUPW accused the Crown corporation of misrepresenting the nature of the talks, saying they were “out of touch with the workers of this country.”

“Canada Post appears to be trying to sway public opinion and turn Canadians against postal workers, who have continually demonstrated a deep commitment to the country and its citizens,” the union said in a statement. “This tactic of distraction not only mischaracterizes the nature of the negotiations but undermines the hard work and dedication shown by postal employees.”

Canada Post responded by saying it is considering its options moving forward after talks ground to a halt on key issues that are critical to its future. It says that with losses of more than $3 billion since 2018 and a $315-million loss in the third quarter of 2024, it needs an agreement that focuses on the future, without adding new fixed costs that will hamper its ability to compete.

“Throughout these negotiations, Canada Post has put forward detailed proposals to bring more flexibility to its outdated, mail-based delivery model. These changes are necessary to better compete in the parcel business, better serve Canadians, and drive much-needed revenue growth,” Canada Post said in a statement.

“We had hoped the union would bring some much-needed urgency to the discussions. That has not been the case.”

Canada Post says the strike, which is now in its second week, is being felt across the country with small businesses, charities and remote communities forced to turn to competitors for their deliveries.

The Crown Corporation says it’s down 10 million parcels just as the lucrative Black Friday and Cyber Monday sales and the holiday shopping season begin.

Canada Post has offered wage increases totalling 11.5 per cent over four years and additional paid leave while the Canadian Union of Postal Workers (CUPW) has called for a cumulative wage hike of 24 per cent over four years. CUPW also wants full-time employees to deliver package shipments on weekends, while Canada Post has offered to hire more part-time staff.

The last postal worker stoppage in 2018 lasted approximately five weeks before the federal government mandated employees return to work. CUPW employers then worked without a contract for two years, with the CUPW and Canada Post reaching collective agreements in Sept. 2021.

Files from The Canadian Press were used in this report