Canada Post, August 25, 2016, Strike Potential

[cumos55]

The Postal Union (CUPW), has been making regular reports with respect to the negotiations with Canada Post  (CPC).

The following information  is from CUPW’s report on its website as  of Friday, August 12

CUPW voted with the possibility of a strike at the end of June.  This option to strike lasts for 60 days.

The 60 day time period ends August 25….  Negotiations can continue if CPC agrees to do so by way of a written agreement.

If there is no agreement to continue negotiations  the union must declare a strike before the 60 days after the last strike vote ends.

The critical date is Thursday, August 25.  If there is going to be a legal strike…  the union must declare  so before August 25.

CUPW will give 72 hours notice of the beginning of a strike.

It is time to mark August 25 on our calendars….

[cumos55]

Defined benefit pensions were established when the interest rate was around 10 %, and better

At 10 % a pension fund gained value quite quickly, doubling in value about every 7 years.

Imagine your parents putting $1,000 in an account when you are born... and at 10 % interest,  you will have a half million dollars ...... $500,000..... in a pension fund at age 65.

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There was a time when interest rates on an investment were as high as 18 %...

and then....  Many had to live with mortgages set at about 20 % and higher....

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High interest rates are  a thing of the past...  Today interest rates are at 1, 2 or 3 %.....

At a 3 % interest rate,  the value of a fund doubles about  every 25 years.

At 2 % it is about every 35 years

At 1 % it is about every 70 years 

Today.....That $1000 deposited in an account at birth,at an interest rate of 3 %,  is going to have a value of $8,000 at age 75

A pension fund cannot grow fast enough to feed a defined benefit plan.

In today's world, a defined benefit pension plan will bankrupt a company that continues to promote such a plan for its employees

[cumos55]

When it comes to pensions, CUPW Is fighting an uphill battle,   where the hill is angled at a 90 degree angle...

and it is a slippery slope to no-where-land......

[momcqueen]

https://www.canadapost.ca/web/en/blogs/announcements/details.page?article=2016/08/17/with_strike_man...

[momcqueen]

https://www.canadapost.ca/web/en/blogs/announcements/details.page?article=2016/08/17/canada_post_to_...

On another note, anyone here from Ottawa going to this?
Canada Post to host Annual Public Meeting

[recped]

Most people probably hope I don't go....I'd be urging them to tell Justin to bugger off when it comes to the subject of clusterboxes. I'd also be telling them to stand firm on the pension issue and suggest the feds also make the same or similar changes to pensions.

Oh yeah, CUPW might issue the 72 hour notice instead of doing another vote to get a refreshed 60 day authorization. But just because they issue the 72 hour notice doesn't mean they will actually follow through.

[cumos55]

There are a lot of people unhappy with CUPW.....  and that includes people  who work for CPC and are represented by CUPW.

This uncertainty is killing Canada Post.... and frustrating many people who normally use Canada Post.

and ... IF CUPW thinks they can win, after  of these past two months, there will be even less mail to deliver... People are finding ways other than Canada Post for mail delivery.... and could continue using these options once everything is settled... if whenever

Then if Trudeau think his actions are acceptable... he will be swimming in hot water very quickly....

What Trudeau has said  and what the Government will do could be two different things.... This Trudeau's father was famous for doing what he promised not to do.  

[cumos55]

CUPW may issue a 72 hour notice.....  and not actually go on strike...

However, CPC may just lock them out and go on an extended holiday....  if the Government does not step in with back to work legislation

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CUPW should also be concerned over the fact their credibility among union members may be reduced over time....  and CPC union workers may go to a different union.....then what?

Also... there is no contract, or more specifically a minimal contract  between CPC and its workers right now......  What can CPC do without getting into trouble?...

CPC has a mandated to be self-sufficient... something that CUPW is choosing to ignore with all of its demands....

[cumos55]

August 21...... 5 more days....

[cumos55]

The following is Canada Post's view in relation to  August 25, and what might or will happen..

Dated August 17, 2016

With strike mandate set to expire August 25, the union is setting the stage to issue 72-hour strike notice

Link to 

https://www.canadapost.ca/web/en/blogs/announcements/details.page?article=2016/08/17/with_strike_man...

A specific reference to the internet .....

The postal service must adapt to its new reality as Canadians lead increasingly digital lives.

A critical statement from the Canada Post Corporation Act

It is the obligation of Canada Post Corporation....

"to conduct its operations on a self-sustaining financial basis while providing a standard of service that will meet the needs of the people of Canada ...’,

it is incumbent on the Corporation to take steps to decrease, or to continue to decrease, its labour/benefit costs.”

[cumos55]

August 22, 2016 .....Four more days

[momcqueen]

Yesterday, for the first time, I heard actual people talking about this amongst themselves. At a picnic table, they sounded like postal workers, as I was walking past. I could not linger so I don't know how they felt about it all. 

[pierrelebel]

As expected, federal government cheques (Oil Age Pension and CPP) were delivered early by Canada Post today (August 22nd) although they are dated August 29th (third business days before end of the month).

[ypdc_dennis]

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@pierrelebel wrote:

... federal government cheques (Oil Age Pension and CPP) were ...

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Does this mean the cheques come with bonus lubrication for creaky joints?

[pierrelebel]

You are expected to take some money from your Old Age cheques to buy some Glocosamine capsules for your creaky joints.

Three capsules a day should do it. 

[momcqueen]

My grandparents swore by cod liver oil for that. They all lived to age 90+. 

[pierrelebel]

"...to age 90+."

Yoda expects to live 900 years - give or take a bit!

https://en.wikipedia.org/wiki/Yoda

[rose-dee]

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@mjwl2006 wrote:

My grandparents swore by cod liver oil for that. They all lived to age 90+. 

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Yes, except sadly the oil is now mostly gone, along with the cod, and any that are left are so tainted with poisons and heavy metals that no one would want to take the concentrated liver oil.  How things have changed in just a few decades, and not for the better. 

To 'pierre'  -- you do know to avoid glucosamine if you're diabetic, right?  

To return to the subject at hand... I'll be watching for a notice, whether it's a strike or lockout, and will be closing down again the moment that happens.  July I could handle, but having to close in September will be really problematic, as it's usually one of my best months.  I can see my TRS going down the tubes...

[momcqueen]

A strike or lockout anytime between September to November, I think, would be the death knell for many small- to medium-sized businesses who rely on online sales. A toyseller like me, that's the time I shine. 

[lizzier-ca]

I'd like to remind everyone to stay the topic of the Canada Post Strike.  If you would like to discuss other things, please feel free to start a new thread.

Sincerely,

LizzieR-CA

Community Moderator

[rose-dee]

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@cumos55 wrote:

A pension fund cannot grow fast enough to feed a defined benefit plan.

In today's world, a defined benefit pension plan will bankrupt a company that continues to promote such a plan for its employees 

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It would depend on how the fund is structured and managed.  Because of the low rate of return on "regular" kinds of investments, many pension funds began to diversify more widely in the past couple of decades, investing in real estate and other assets that generate income, developing investment plans specifically designed for long-term growth.  

Also, while contributions many decades ago continue to grow, new contributions are constantly being added, often at a higher rate because people are earning more or companies are contributing more, and contributions change over time as well.  I'm certain my husband was not contributing the same monthly amount to his plan in 1980 as he did in 2010 just before he retired.  

So I don't think that pension plans are a simple and straightforward calculation anymore.  I think many have actually adapted to the new realities.  CPC needs to find some ways to do the same.  

However, I do agree that the union needs to recognize that they may not be able to have it all in one negotiation.  They should focus on the most important protection for their membership into the future, which I think is the defined benefit pension.  Splitting the workforce into a two-tier pension system is the first step in creating rancour and divisiveness between older and newer employees.  I've seen it happen, and it doesn't make for an efficient workforce.  

For all the reasons I've mentioned before, I think I'd rather have the federal government inject cash into this impasse to save everybody, rather than leave the parties to wallow in this painful limbo for another few weeks or months.  Then work on reforming the whole mess through legislation after our postal service is back in operation again.