Posted: 2011/6/23 Comments Feed

Open Letter to Employees

Dear Colleagues,

We know you’re disappointed—as we are—that contract talks between Canada Post and the Canadian Union of Postal Workers broke off on June 22. With so much at stake, you deserve to know why.

For the first time this week, we finally saw some movement by the union to address the challenges faced by the company. This happened only after the Minister of Labour tabled back-to-work legislation and after hundreds of millions of dollars in losses had been inflicted on us. Despite the growing revenue loss, we made yet additional concessions in an attempt to reach a deal.

Had we seen the same amount of movement before the beginning of strikes, we would have been in a much better position to reach a deal. However, after incurring hundreds of millions of dollars in losses, we are even in a worse position to pay for all of the demands.

In the 12 days of rotating strikes, we would like to think that we showed great patience—despite the harm to the business. We made a revised offer on June 9, six days into rotating strikes. We did not get a serious response until the night of June 21, a full 12 days after we made the offer, and after the Minister tabled the legislation.

We hope this gives you some sense of what we were facing.

Canada Post started negotiations believing we could secure a deal by offering wage increases and protecting pensions and job security for all current regular employees.

We also proposed a pension solution for new employees that preserves the security and benefits of the pension you currently enjoy but recognizes that people live now much longer. With job security, every 20-year-old employee we hire in 2011 will have guaranteed employment until 2051 and can expect to collect pension on average until 2071. That’s decades of promises to keep—and to fund. Meantime, as Lettermail declines, we have to keep prices affordable so we can compete against the Internet and global couriers many times our size.

So we proposed meaningful changes for new hires that still offer them wages and benefits that are better than other logistic and delivery companies.

We deeply regret that talks broke down. It pains us and worries us that customers and employees are hurting. We did everything we could to avoid this, short of taking on an expensive long-term cost burden that is simply unrealistic and unsustainable.

We know everyone is anxious to start work and start serving Canadians.

Deepak Chopra
President and CEO

Jacques Côté
Chief Operating Officer

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