The Canadian Union of Postal Workers on Friday implemented a nationwide stoppage on overtime work, averting a full-blown strike that would have shut down mail and package delivery across Canada, after the union received a late contract offer from Canada Post.
But the threat of a strike has already done damage to Canada Post’s parcel business, and the postal operator said customers may experience delays even with the continuation of operations.
In a statement Thursday night, Canada Post said it has already experienced a sharp drop in mail and parcel volumes as customers, fresh from experiencing a five-week strike that ended with government intervention in December, seek alternative carriers or cancel mailings to ensure items don’t get stranded in the postal system. The union said it decided to proceed with the overtime ban to minimize disruption to the public and lost pay to members.
It is unclear how long the refusal to work overtime will last or if the Canadian Union of Postal Workers (CUPW) will escalate strike actions. The union earlier this week said it would call a strike Friday without a contract resolution. Canada Post earlier Thursday rejected a CUPW request for a two-week truce so its negotiators could review Wednesday’s proposal in detail without a labor disruption, saying union negotiators didn’t provide a serious response to its offer during a 30-minute meeting.
U.S. and Canadian parcel logistics providers, which consolidate packages heading to the same destination in a single container shipment for efficiency and easier customs clearance, have spent the past couple weeks switching customers from Canada Post to other last-mile carriers in Canada, according to industry professionals.
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