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29 November 2024

Canada Post Faces Backlash Over Temporary Layoffs During Ongoing Strike

The Canadian postal service adjusts operations amid labor disputes, prompting union claims of intimidation and legal violations

Canada's postal services, governed by the Canada Post Corporation (CPC), are currently entangled in significant labor disputes. With more than 55,000 postal workers engaged in strikes, the impact has rippled through operations, leading to Canada Post announcing temporary layoffs of some of these workers.

The Canadian Union of Postal Workers (CUPW) has been vocal about what it deems as retaliatory actions by CPC during this labor disruption. According to the union, the layoffs are not only temporary but also perceived as intimidation tactics aimed at undermining the strike. The CUPW stated, "The layoffs are merely seen as scare tactics, and members should not panic if they receive such calls."

A spokesperson for Canada Post, Lisa Liu, confirmed the layoffs, asserting they were necessary adjustments to their operations amid the Union’s national labor disruption disrupting normal business practices. Liu indicated, "Unfortunately, due to CUPW's interruption, we have made adjustments to our operations as permitted by the Canada Labour Code." The company pointed out how these collective agreements have expired, thereby allowing CPC room to maneuver concerning employment conditions.

Interestingly, the layoffs appear to go against sections of the Canada Labour Code, which prohibits employers from suspending employees participating in strikes. Therefore, CUPW has suggested they are exploring potential legal avenues, claiming, "There are significant legal and labor violations involved with this process."

The timing of these layoffs coincides with mediation talks which have now been suspended, intensifying the strain between the union and the postal service. Both parties have reached a standstill, as highlighted during discussions on disengaged negotiations led by Labour Minister Steven MacKinnon. He urged both sides to re-engage with renewed urgency.

CUPW negotiator Jim Gallant noted the unexpected administrative actions taken by the post office. Reports indicated Canada Post has dispatched about 55,000 Records of Employment (ROEs) to Service Canada, which are usually applied when employment is terminated or suspended. Gallant described it as highly unusual and alarming, adding, "It seems like intimidation—with many workers out of pocket due to the strike and suddenly receiving documentation resembling termination notices."

This abrupt shift follows Canada Post's previously issued lockout notice aimed at restructuring business operations without implementing immediate lockout actions against employees. From CUPW's perspective, this move suggests CPC is seeking ways to dilute worker power during contract negotiations, especially concerning calls to improve payment structures and labor conditions.

Legal experts are casting doubt on the validity of CPC's justification for the layoffs. Labour and employment lawyer Deborah Hudson intimate these activities are unprecedented during such strikes, asserting, "If the layoffs are not clearly justified by genuine operational needs, legal repercussions will ensue swiftly." This sentiment is echoed by David J. Doorey, labor law professor at York University, reinforcing CUPW’s likelihood to challenge these layoffs based on their supposed illegitimacy amid active labor relations.

Striking workers hold the legal right to return to their positions once the labor action ceases. Doorey added, "The company would need to convincingly argue their restructure has nothing to do with the workers' participation during the strike. The counterarguments may prove weak, especially amid public scrutiny and media coverage on this issue."

Financial pressures on Canada Post have remained front and center through this dispute. The Crown corporation has previously reported substantial losses, even indicating they anticipate another financial hit this fiscal year. For example, the organization recorded $315 million losses before tax last quarter alone, showcasing the operational challenges faced within the current economic framework.

It's clear the union's demands point out the necessity for headway on key issues, including weekend deliveries and wages. CUPW has criticized the company for potentially moving toward more contract-based, part-time positions which they regard as 'gigification' of the workforce. This transition could fundamentally alter the employment security for traditional postal workers.

While the postal workers uphold their stance, Canada Post's management has insisted on exploring negotiation pathways to address the pressing issues and operational realities forced through prolonged labor disputes. The postal services have experienced significant disruptions to parcel deliveries during this period, and both CPC and CUPW remain at odds over future contractual agreements as they vie for operational sustainability and employee rights.

Given the uncomfortable climate for postal services as strikes continue, questions loom over what the future holds for Canada's postal dynamics as principles of labor rights and operational necessities collide.

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