Canada Post warns biggest customers to prepare for service disruption

Some of Canada Post's biggest customers, including the federal government, are being told to make contingency plansahead of a possible contract dispute with workers this summer.

Jon Hamilton, a spokesmanfor Canada Post, toldCBC News that while the corporation is not trying to be "alarmist,"it has decided to informsome key clients about thepossible service disruption.

Canada Post and the Canadian Union of Postal Workers (CUPW)have been in contract negotiations sincelate 2015to reach a new agreement for about 50,000 workers.

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CUPWpresident MikePaleceksays management will bein a position to lock out workers by July 2.Both sides say little progress is being made at the negotiating table.

Jessica Kingsbury, aspokesperson forPublic Service and Procurement Canada, confirmed contingency plans are underway "to ensure that socio-economic cheques, such as child tax benefits, Old Age Security Pension and Canada Pension Plan benefits, would be delivered by Canada Post if a labour disruption was to occur."

In an e-mail, Kingsbury added the Receiver General expects the payments "would be delivered on a specific day of the month. In this situation, some recipients of payments, such as Canada Pension Plan and Old Age Security, should expect to receive their payments earlier than normal."

She said there will be no impact on payments made by direct deposit.

Talks moving slowly: Union

Paleceksays"management is asking for unprecedented cuts."

CBC News obtained a memo being sent to CUPWmembersby their union on Friday. It listssome of the demands from management, including:

• Cutting the "more securedefined benefit" pension plan and switching to a "riskier defined contribution" pension for all members in the future.
• A pay freeze for temporary workers for the life of the collective agreement.
• Eliminating the paid meal period for employees.
• Removal of stools in new concept stores.
• Amending the promise of job security so it applies only to employees with 10or more years of continuous employment instead of the current fiveyears.

Hamilton declined to discuss Canada Post's position at the negotiating table, but he did say the company is looking for a deal that is "objective andfair."

"We hope to reach an agreement," he added, butit must reflect changes to the industry, as well as changing customer needs.

Onlineshopping happens seven days a week but our structure for delivery is five days a week, during business hours. We are looking for some flexibility.- Jon Hamilton, Canada Post

Canada Post says Canadians are sending fewer pieces of traditional mailthan they did a decade ago, which ishaving an effect on the corporation's bottom line.

Hamilton says that in 2006,workers delivered fivebillion pieces of mail to 14million addresses. In 2016, just 3.4 billion pieces of mail are expected to be deliveredto 16million addresses. The combination of less revenueand more territory to cover is a challenge Canada Post is dealing with.

Customer needs are also an evolving concern, Hamilton says. "Online shopping happens seven days a week but our structure for delivery is five days a week, during business hours.We are looking for some flexibility."

Expecting a lockout

CUPWhas accused management of trying to provoke a labour disruption. Canada Post asked the federal government to send in third-party conciliatorsto help with the negotiation process. The union says asking Ottawa for helpputs a timeline on talks, leading to the deadline in July.

"We are expecting Canada Post to lock us out," Palecek says.

"Management will have the ability to unilaterally change working conditions when conciliation is finished,"Palecek adds. "We will be conducting strike votes in June in order to protect our members. If management moves in that direction, we need to have a strike vote in place so we can legally respond to their actions."