POSTAL LOCKOUT/STRIKE UPDATE: BINDING ARBITRATION PROPOSED BY GOVT

Good news overnight on the looming postal lockout/strike front. To paraphrase The Godfather, the federal government has made an offer they can't refuse. 

 

https://www.canadapost.ca/web/en/blogs/announcements/details.page?article=2016/07/06/canada_post_pre...

 

Canada Post Prepared to Submit to Binding Arbitration

 

Federal Minister of Employment, Workforce Development and Labour, MaryAnn Mihychuk, has asked both Canada Post and the Canadian Union of Postal Workers (CUPW-Urban and CUPW-RSMC) to submit to binding arbitration to resolve the current impasse at negotiations.

 

The Canada Post Corporation has already agreed. "It is our hope that CUPW will consider submitting to binding arbitration to end the uncertainty. Canada Post is extending the current 72-hour notice period to Monday at 12:01 am to provide time for the union to consider this option."

 

It would be suicide for the unions to refuse, although I do expect they will make a show of doing so and wait until the final moments to concede. Binding arbitration is the best we can hope for at this point.

 

 

 

 

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Re: POSTAL LOCKOUT/STRIKE UPDATE: BINDING ARBITRATION PROPOSED BY GOVT

Canada Post is a Crown Corporation,    totally independent of any monetary input by the Federal Government.

 

It earns money and pays taxes like any other corporation.

 

Canada Post started out as a monopoly relating to the delivery of  all mail to all destinations in Canada....

 

The government was 100 % in control

 

That was 50 years ago... Then slowly came the courier services for parcel delivery only.

 

Things have changed dramatically over the past 20 years....  specifically the internet and e-commerce.

 

Less lettermail... more parcels.

 

Canada Post is in the process of directing the focus to ''' Delivering the on-line world."

 

 

If things progress... CPC may need less employees......   or will have to change what the employee's job within CPC will be.

 

Because of .....Community mail boxes....  less lettermail... more, and more parcels.

 

A strike/lockout puts in kink in CPC's plans...... 

 

Ultimately CUPW will lose... less employees needed to work the new system....specifically with respect to less emphasis on home delivery... to every house...

 

But then there will be a high intensive action with respect to parcel delivery

 

 

As the owner of CPC  the Federal Government will eventually step in and assist  CPC in fulfilling its mandate

 

and one can conclude  that whatever CUPW wants will become less and less important.

 

 

I can see the day when there will be no more strikes or lockouts... legislated  by the Government.... Everything will be negotiated through arbitration.... 

 

CUPW ... if there still is a CUPW... will have to work with CPC

 

Canada Post will never again shut down.......

 

The situation in 2016 is very much different than in 2011......mainly because of the internet and e-commerce.....

 

 

We the people of Canada,  as the "indirect  owners" of CPC have a right to say no more strikes or lockouts....

 

and... If you study CUPW's actions... carefully... I suspect that  the union can see the future...

 

and... It all started in 2011.....

 

Even now  CUPW recognizes that the Federal Government is in control   of what is happening... in control of CPC, and in turn  indirect control of CUPW.

 

CUPW as we see it today... will be a lot different, and with a different mandate a few years from now....

 

----------------------------------------

Finally... I do suspect that someone in the Federal Government is reading what is being said here... and whatever we say may help to finalize what should happen with this situation... and most definitely in the future.

 

 

 

 

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Re: POSTAL LOCKOUT/STRIKE UPDATE: BINDING ARBITRATION PROPOSED BY GOVT


 

 

 

Would privatization or selling Canada Post to private interests (after this dispute is eventually settled) solve the problem on a permanent basis? The federal government already stated a few months ago that this option is NOT on the table.


No at the moment.  But the next PM is calling for CP to be privatized

 

http://www.huffingtonpost.ca/2016/07/08/maxime-bernier-canada-post-privatize_n_10888778.html?utm_con...

 

Just over 3 years away

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@cumos55 wrote:

It used to be that Canada Post would deliver a parcel to your residence  and leave the parcel at the residence,  when you are not home........

 

With community mailboxes  they leave it in a compartment  and you as the recipient get a key  that opens the compartment.

 

It was only recently   that you can sign up for a special option ... no extra cost.... where all of your parcels are held at a postal outlet  for pickup.....  This works if you get a lot of parcels on a regular basis...  The community mailbox is not overloaded ... or alternatively....  No parcel is lost if left unattended at your residence.

 

This new system of parcel delivery has a unique name... Flex delivery.....

 

Link to 

 

https://www.canadapost.ca/web/en/blogs/announcements/details.page?article=2016/06/17/canada_posts_in...


 

A flex-delivery address does not work if the item is send via lettermail or oversize lettermail -- it gets returned as undeliverable -- the Canada Posr flex delivery address is only good for parcel class items with tracking numbers.

 

Source: a Canadian seller in the A-river forums

 

-..-

 

 

 

 

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tobyshi@tzu wrote:

 

Would privatization or selling Canada Post to private interests (after this dispute is eventually settled) solve the problem on a permanent basis? The federal government already stated a few months ago that this option is NOT on the table.


No at the moment.  But the next PM is calling for CP to be privatized

 

http://www.huffingtonpost.ca/2016/07/08/maxime-bernier-canada-post-privatize_n_10888778.html?utm_con...

 

Just over 3 years away


 

I didn't realize the Libertarians (which this guy claims to be) were doing that well in the polls.

 

-..-

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@rose-dee wrote:

 

It seems to me that rather than intervening as the "heavy", the government could save Canadian taxpayers a lot of money and rescue a whole lot of small businesses from a shutdown if they injected enough cash into CPC to meet the reasonable needs of the unionized employees, i.e. making the labour dispute moot.  


Unfortunately, as a Crown corporation, Canada Post is expected to be self-sustaining, which means that it doesn't and can't take handouts from the government.

However, the government does skim off a portion of Canada Post's revenue annually as a "shareholder dividend" of sorts.  Perhaps there's some sort of mechanism in place that would allow Canada Post to keep more (or all) of its revenue for the next few years while it gets its house in order.

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there hasnt been any shareholder dividend in years, and won't be anytime soon

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Re: POSTAL LOCKOUT/STRIKE UPDATE: BINDING ARBITRATION PROPOSED BY GOVT


@pierrelebel wrote:


From Canada Post 2015 Financial Report

 

"Size and volatility of pension and other post-employment benefits

 

The solvency deficit to be funded for the Canada Post Corporation Registered Pension Plan is estimated at $6.2 billion (using
the three-year average solvency ratio basis) as at December 31, 2015. Significant obligations of the RPP and other post-
employment benefits continued to be a concern for the Corporation. The large size and volatility of these obligations
compared to our cash position and profit put substantial pressure on cash flows and our ability to fund needed investments in
modernization and growth. Volatility from one year to the next is caused by fluctuations in discount rates, investment returns
and other actuarial assumptions, resulting in sizeable financial and long-term liquidity risksto the Corporation. During 2015,
this volatility had a positive effect on the Group of Companies’ defined benefit plans, leading to remeasurement gains of $794
million, net of tax, recorded in other comprehensive income (loss) and improving the Group of Companies’ equity balance to
negative $1.1 billion as at December 31,2015. These remeasurement gains were mostly the result of gains on investments and
an increase in discount rates in 2015. However, without pension funding relief permitted by legislation, Canada Post would
have been required to make special contributionsto the RPP of approximately $1.4 billion in 2015."
 
For more information on the subject (it is rather complicated)
 

And then there's the union's take on it:

http://www.cupw.ca/en/why-canada-post-hiding-huge-surplus-pension-plan

"The solvency deficit only comes into play if a pension plan is terminated. Since the federal government has ruled out privatization from the mandate of the Review Committee, there is no reason to believe the plan will be terminated. Solvency deficits are caused by low long term interest rates. Should (or when) interest rates go up by only 1%, the solvency issue will disappear entirely."

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@toby**bleep**zu wrote:
Pretty hard to negotiate when the union is demanding more then your entire "profit", you only have q profit becuase the government is termporarily allowing them not to make $1+ billion annual pension liability payment, your business is on decline,   you've already been increasing prices far beyond inflation, and the union managed to get the government to at least postpone rolling out the only thing that will save significant money  


But also keep in mind that to mitigate those increased liabilities, the union has been proposing new sources of revenue for Canada Post.

Message 108 of 225
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@toby**bleep**zu wrote:

But the next PM is calling for CP to be privatized

 

http://www.huffingtonpost.ca/2016/07/08/maxime-bernier-canada-post-privatize_n_10888778.html?utm_con...

 

Just over 3 years away


And yet the party itself is now trying to portray itself as the saviour of door-to-door delivery:

http://www.pressprogress.ca/conservatives_vow_to_stand_up_for_door_to_door_mail_delivery_except_they...

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Re: POSTAL LOCKOUT/STRIKE UPDATE: BINDING ARBITRATION PROPOSED BY GOVT

This is a big country, with vast spaces to deal with.  Is a subsidized national postal system with an invested, professional workforce no longer possible?  Surely a service that reaches all Canadians, wherever they are, is worth preserving?

 

The 'mission statement' of Canada Post makes it clear that it must service at least with lettermail (and Registered Mail) all parts of Canada.

That doesn't mean seven days a week service or even five days a week. A lot of isolated communities are content with one day a week service (I have a Welcome to Alert document from the 60s that will be offered when the current situation is settled that specifies weekly mail service for the staff).

Even Rural Free Delivery, which came in the 1920s, seems to be disappearing.

So that's the law and has been since the 1850s.

 

I keep repeating-- cui bono?

Who benefits from selling off the Post Office?

It won't be Canadians.

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Update. There is an interesting quote from UPS as to how 'refugees from Canada Post cannot expect the same level of service as their regular pre-existing clients'.

http://www.cbc.ca/beta/news/business/canada-post-lockout-alternatives-1.3670342
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this is all the more reason back to work legislation is needed.   Because the Gov't has mandated that there can be only one postal system in Canada, the Gov't must ensure that it is functional year round.  Couriers are not a replacement for a postal system any more than taxi cabs are a replacement for public transit.

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"back to work legislation is needed"

 

Maybe, maybe not.  It is a question of point-of-view.  But whatever law is enacted, it must be constitutional.  Let's not repeat the mistakes of the Harper government.

 

In April 2016 the Ontario Superior Court released its reasons in Canadian Union of Postal Workers v. the Attorney General of Canada. This much-anticipated ruling is the first to apply the Supreme Court of Canada's seminal Saskatchewan Federation of Labour v. Saskatchewan (SFL) decision in a constitutional challenge to back-to-work legislation.

 

The facts leading to the CUPW Charter challenge were as follows. In 2011, CUPW and Canada Post were attempting to negotiate a renewal collective agreement. They reached an impasse. CUPW launched a series of rotating strikes, while undertaking to ensure delivery of social assistance and other government cheques. Canada Post responded by ordering a national lockout. That same day, the government announced its intention to introduce back-to-work legislation. In short order, the Harper government enacted the Restoring Mail Delivery for Canadians Act. The act did the following:

  • Restored the expired agreement
  • Ordered the postal workers back to work
  • Provided heavy fines for any union activity that might encourage employees not to return to work
  • Banned all strike activity
  • Established by fiat the wage increases to be inserted in, and the duration of, the next collective agreement
  • Decreed that a rare form of arbitration, ad hoc final offer selection (FOS), would settle all other terms in the next collective agreement, unless the parties reached an agreement first
  • Empowered the Minister to unilaterally appoint the arbitrator
  • Directed that the arbitrator be “guided” by factors that were tailor-made to favour Canada Post's agenda - such as what comparator groups would be considered, and a ban on any terms that would worsen the solvency ratio of the pension plan.

The act dramatically shifted the balance of power. Canada Post began to table offers less favourable than those it had already made. CUPW cut back its demands rather than risk the outcome of such a lopsided arbitration process. Under those conditions, CUPW did negotiate a new agreement, which was ratified by a bare majority of the small group of members who actually voted. But CUPW also launched a Charter challenge to the Act.

 

As these events unfolded, no Canadian Court had recognized a constitutional right to strike. The then-popular view was that the Charter protected only the right to join a union, and the right of the union to negotiate to an impasse; but not a right to strike, nor a right to any other method of resolving impasses.

 

Then along came the Supreme Court of Canada's decision in SFL. It held that the Charter does protect the right to strike; that this right can be taken away only in limited circumstances; and that where it can be taken away, it must be replaced by an alternate dispute resolution that is “impartial, effective, adequate and fair”.

 

Applying that precedent in the CUPW case, Justice Firestone found that the provisions banning CUPW strikes violated both freedom of association under ss.2(d), and freedom of expression under 2(b) of the Charter. He found a second violation of freedom of expression in the provision that banned, and made punishable by hefty daily fines, any union conduct that might encourage employees not to return to work. He ruled that none of those violations were saved by s. 1 (which sanctions Charter violations that are “such reasonable limits prescribed by law as can be demonstrably justified in a free and democratic society”).

Justice Firestone's decision will assist two other constitutional challenges in the pipe.

 

Reference: http://www.labouroflaw.ca/e/another-constitutional-win-for-unions.cfm

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right.......so back to work legislation is perfectly legal,...Harper's mistake was that he did not provide an alternate dispute resolution that was impartial, effective, adequate and fair.  Easy to fix that and it should be fixed.  I'm not saying CUPW should be ground into the dirt, simply that the postal system must be kept functional at all times.  An impartial arbitrator can decide on the ethics and legality of CUPW's demands.

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"so back to work legislation is perfectly legal,"

 

I would not be so quick to reach that conclusion.

 

Many postal strikes in Canadian history (regardless of party in power; this is not a partisan issue) ended up with legislation forcing workers back to work.  Yet, something must be wrong with that formula if we need to go back at it every four/five years.

 

Postal workers do have a legal right to strike, whether we like it or not.  That is recognized in law (see Supreme Court ruling).  Civil service has a legal right to strike, so do teachers and most medical practitioners.

 

A government cannot be arbitrary and force workers back to work without letting them strike in the first place.  A preemtive legislation would be anti-constitutional.

 

Maybe a solution would be using clause 1 of the Charter of Rights and remove the right to strike by all government workers (all levels) and replace it by something else.  Would that solve the problem?

 

It would eliminate the inconvenience suffered by the Canadian public (and businesses) when public employees strike. Could it be made fair, could it work?  I do not have an answer to that question.  It has been asked for a very long time, ever since we gave government workers the right to strike.

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What would happen if Canada Post was declared "An Essential Service"?

 

No more strikes or lockouts...

 

Also....

 

If CPC and CUPW cannot sign a new contract.... There is no contract.... and then what?

 

 

 

 

 

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"What would happen if Canada Post was declared "An Essential Service"?"

 

That is the problem.

 

While "lettermail" could be considered an "essential service" to all Canadians and Canadian businesses, there is no way one could honestly consider the "parcel" division as 'essential" as it competes with many other services, locally, domestically and internationally.

 

UPS workers do have the right to strike, Fed-Ex workers do have the right to strike, etc... to remove that right from postal workers does not make sense, does it?

 

Canada Post may have to divide itself in two:

 

1) an essential service, controlled through a Crown Corporation, providing mail service to all Canadians

 

2) a parcel delivery service, owned by private interests with no link to the government. Since such company would have to compete with UPS, FedEx, Canpar, etc   I suspect their workers eventually would earn comparable wages with comparable benefits.  I do not think current postal workers (with superior wages and benefits) would be too happy!

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marnotom!
Community Member
Seeing as Canada Post's parcel service heavily cross-subsidizes its letter mail operations, I can't see how a separate letter service could be self-sustaining unless we're prepared to pay a lot more for letter mail, or else this service is able to offer other services.

And then there's the issue of all these remote/rural locations that only have access to parcel service from CPC.
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@pierrelebel wrote:

 

 

Maybe a solution would be using clause 1 of the Charter of Rights and remove the right to strike by all government workers (all levels) and replace it by something else.  Would that solve the problem? 

 


In my view, it would solve the immediate problem, but erode both the meaning and the integrity of the Charter. The words "reasonable limits", and "as can be demonstrably justified" are the sticky ones in Clause 1, and I believe they were included there for a very good reason.  

 

The question is: do we curtail or remove a right already guaranteed under the Constitution in order to solve another problem?  What exactly would "demonstrably justified" look like in that context? 

 

During a state of war, perhaps "demonstrably justified" takes on a clearer meaning.  But would we really want our government(s) to start chipping away at Charter rights in order to solve practical problems?  Once that starts, where exactly does it end?  Once one government manages to get the courts to accept that removing or diminishing a right is legally justifiable, it opens the precedent door.  

 

Which other rights then become dispensable because they involve excessive cost, inconvenience or even hardship for certain segments of society?  The use of the word "guarantee" in the Charter was neither accidental nor intended to be taken lightly, and I believe the courts -- especially at the higher levels -- understand this well. 

 

To allow legislation to entirely ban the right to strike by government workers would be, in my mind, be the definition of a slippery slope away from the rights and freedoms that have taken us so long to achieve.  It may seem a logical and common sense solution, but history has shown it's the kind of solution that despots and dictators turn to in order to control populations.  

 

No, I'd rather keep the strength of our Charter and put up with the cost and discomfort of strikes.  Let the government find another way to deal with union/corporation disputes, even if it means a complete overhaul of (in this case) a troublesome corporation and some additional taxpayer money. 

 

You know, the issue you put forward is analogous to the far more dramatic and consequential one that is going on right now in the U.S. over gun restrictions and the 2nd Amendment.  Should government limit a long-enshrined constitutional right, even when the rationale for that right really no longer exists, in order to solve a current (admittedly extremely serious), problem?  

 

I don't envy them that dilemma, although the principle is the same.  

 

 

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@rose-dee wrote:

Let the government find another way to deal with union/corporation disputes, even if it means a complete overhaul of (in this case) a troublesome corporation and some additional taxpayer money. 

 

 


Oh incidentally, I forgot about China, the other extreme on the spectrum.  How do they subsidize all that mail service?  Presumably the PRC does not believe in strikes either. 

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