Canada Post and the union representing 50,000 postal carriers announced late Friday that they had reached a tentative agreement on a collective agreement after more than two years of often bitter negotiations, marked by two strikes and other work delays.
No details about what led to the breakthrough were released. The Canadian Union of Postal Workers announced that it would suspend all strike activity while the parties work to reach a final agreement. After ending a two-week strike last month, the union has been striking areas on a rotating basis.
After negotiators complete a new contract, it goes to union members for a ratification vote.
“If tentative agreements are not reached because the parties do not agree on how to reflect the agreement in principle in the language, the suspension will be lifted for both parties and the union may continue its strike activity,” CUPW said in a statement.
News of the initial deal came the same day Canada Post reported a record quarterly loss of $385 million in the quarter ended Sept. 30. In the first 9 months of the year, it has lost 703 million dollars, which is more than double the loss of last year. Losses have been mounting for years, but they accelerated as online retailers and other businesses turned to other companies over concerns that a potential labor action could block package deliveries, leading to a 40 percent drop in package revenue.
Canada’s government under Prime Minister Mark Carney recently ordered Canada Post to move forward with structural reforms aimed at improving efficiency and cutting costs, moves the union fears could cost jobs.
CUPW said: “This round of bargaining has been challenging. But members are standing together for strong public services, good jobs and a sustainable Post Office.”
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Canada Post, the largest union, announced a pilot contract first on FreightWaves.
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