Minister Confirms Canada Post Strike Won’t Be Sent to Arbitration
The federal government has announced it does not plan to intervene in the ongoing labor dispute at Canada Post, despite the proximity to the busy holiday season.
Labour Minister Steven MacKinnon, speaking to reporters on Wednesday, clarified that binding arbitration is “not in the cards” for resolving the impasse. This position stands in contrast to recent government interventions in labor disputes at ports and railways.
“Every dispute is different, but here the issues are fundamental,” MacKinnon explained in French. “Canada Post was built to deliver letters, but Canadians no longer send many letters. The corporation must transform into a business that not only delivers letters sustainably but also parcels profitably.”
MacKinnon highlighted the complexity of the dispute, noting that the differences at the negotiation table stem from contrasting visions for the future of Canada Post.
“It’s difficult to imagine an arbitrator who could adequately address these fundamental issues,” he said. “While I won’t rule out any future options, at this point, if an agreement isn’t reached at the table, this labor conflict will continue.”
Earlier Wednesday, MacKinnon announced on X (formerly Twitter) that mediation had been temporarily suspended after a special mediator determined the two sides were too far apart on key issues. As a result, he summoned both parties to his Ottawa office, emphasizing their shared responsibility for the consequences of the ongoing strike, which has disrupted mail and parcel delivery since November 15.
The strike involves approximately 55,000 workers demanding fair wages and improved working conditions. Canada Post argues that meeting these demands would impose significant costs and reduce operational flexibility.
Despite eight days of mediation efforts, MacKinnon acknowledged that negotiations have stagnated. “Obviously, small businesses and others are being impacted by this conflict,” he said, expressing dissatisfaction with the lack of progress.
Asked about the government’s approach compared to its handling of other recent labor disputes, MacKinnon stated, “We are using every tool available to bring this dispute to an end. But ultimately, the parties involved must find a resolution.”
Canada Post recently reported a pre-tax loss of $315 million in the third quarter of 2024, driven by a 9.6% decline in parcel deliveries compared to the same period last year.
