Canada Post says strike threat is already affecting revenue

Canada Post is facing a serious threat of a strike that is rapidly impacting its revenue. The company has expressed concerns that the uncertainty surrounding the strike is causing customers to switch delivery services, resulting in a significant decline in mail and parcel volumes. This shift in customer behavior is particularly problematic during the holiday season, as retailers require certainty for their shipments.

In a statement released on Monday night, Canada Post acknowledged that the strike threat is leading to a loss of revenue as customers worry about their holiday packages not arriving in time. The Crown corporation revealed that retailers are moving their parcels to other delivery companies, while some customers have even cancelled direct marketing campaigns to avoid potential delays.

The ongoing contract negotiations between Canada Post and its unionized employees have been going on for nearly a year. Last month, 95% of workers voted in favor of a strike, indicating a high level of dissatisfaction among employees. Despite negotiations continuing over the weekend, both sides have escalated their language, with the Canadian Union of Postal Workers (CUPW) stating that they will not shy away from taking the next step if there is no real movement at the bargaining table.

One of the main sticking points in the negotiations is the push for weekend delivery. Canada Post has been struggling financially, having lost $3 billion since 2018 and $490,000 in the first six months of this year alone. The company has emphasized the need to expand parcel delivery on evenings and weekends to remain competitive with other delivery services. However, the union has expressed concerns about ensuring that the changes do not compromise regular full-time weekday routes.

In addition to the issue of weekend delivery, the union has raised concerns about Canada Post’s unwillingness to improve its short-term disability plan. The union is pushing for improvements to include 10 medical days and seven personal days as part of their collective agreements, but the employer has shown little willingness to consider these demands.

Federal Labour Minister Steven MacKinnon has indicated that federal mediators are working to avoid a labor dispute and facilitate dialogue between Canada Post and CUPW. Despite the challenges and tough negotiations, both parties are still engaged in discussions to try and reach a resolution.

Overall, the threat of a strike is putting pressure on Canada Post’s financial situation and impacting its revenue. With the holiday season approaching, the company is facing significant challenges as it tries to navigate the ongoing contract negotiations and address the concerns raised by its unionized employees.