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Canada Post shuts down operations nationwide

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Canada Post shuts down operations nationwide
For the first 12 days of the ongoing Canada Post strike, Canadians were receiving mail, at least periodically. That is now about to change as Canada Post announced that they have shut down operations across Canada. Rotating strikes have had a significant impact on the short-term revenue of the business.
PHOTO CREDIT - Canada Post

Cornwall - Jun. 15, 2011 - For the first 12 days of the ongoing Canada Post strike, Canadians were receiving mail, at least periodically. That is now about to change as Canada Post announced that they have shut down operations across Canada.

The accelerating decline in volumes and revenue combined with the inability to deliver mail on a timely and safe basis has left the company with no choice but to make this decision.

Specifically Canada Post says it has taken this action for the following reasons:

  • Rotating strikes have had a significant impact on the short-term revenue of the business. Canada Post’s estimated losses are approaching $100 million after today’s strike in Montreal and Toronto and that figure is climbing daily;

  • Over the past few days several incidents have raised concerns about the ability to move the mail while keeping our employees and customers safe;

  • Canada Post and CUPW remain far apart on several fundamental issues and there has been no progress made at the negotiating table for weeks;

  • If Canada Post allows the uncertainty created by the rotating strikes to continue, their ability to remain financially self-sufficient and not become a burden on Canadian taxpayers will be in jeopardy.

    Canada Post believes that a lockout is the best way to bring a timely resolution to this impasse and force the union to seriously consider proposals that address the declining mail volumes and the $3.2-billion pension deficit.

    Canada Post continues to believe that the best result from this round of bargaining is a negotiated settlement. The company had hoped to reach an agreement without a disruption in Canada’s postal service which is why the company made every effort to protect the pay, pension and job security of existing employees.


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