OTTAWA - Unionized Canada Post workers have rejected the company's latest contract offers, leaving the future of negotiations uncertain. The Canadian Union of Postal Workers (CUPW) announced that approximately 55,000 members voted against the proposals, which included wage increases of about 13 percent over four years and changes to incorporate more part-time positions. The rejection was significant, with 68.5 percent of urban mail carriers and 69.4 percent of rural and suburban workers voting against the deal.

Adam King, an assistant professor in the labor studies program at the University of Manitoba, described the forced ratification vote, ordered by the federal government, as a "distraction." He expressed hope that an agreement could eventually be reached at the negotiating table. "Canada Post management is really going to have to put something on the table that the union actually thinks members will accept," he said.

Negotiations for a new collective agreement have been ongoing for over a year and a half. The federal government intervened last year to prevent a postal strike during the holiday season, but the parties have yet to reach a resolution. Canada Post had requested that Jobs Minister Patty Hajdu send its latest proposals from late May, labeled as "final offers," to a vote. Following the vote, Canada Post expressed disappointment in the results and is currently considering its next steps.

CUPW has indicated that its negotiators are prepared to return to the bargaining table. Meanwhile, a national ban on overtime work, which has been in effect since CUPW entered a strike position in late May, will remain in place.

Despite the unfavorable outcome for Canada Post, King noted that the vote was not a complete rejection, as over 30 percent of voters supported the proposals. Larry Savage, a professor in the labor studies department at Brock University, pointed out that the division within CUPW could complicate efforts to organize a strike. "Even if you could effectively organize a strike, it's not obvious to me that it would produce the results the union's looking for," he said.

Before the forced vote, Hajdu had suggested that the parties consider binding arbitration to resolve the dispute. While CUPW was generally in favor of arbitration, Canada Post opposed it, arguing that it would prolong negotiations. The uncertainty surrounding the contract talks has reportedly cost Canada Post millions of dollars in lost business as customers turn to competitors.

The financial difficulties of Canada Post have been highlighted in recent reports. An Industrial Inquiry Commission report by Commissioner William Kaplan indicated that the postal service is effectively bankrupt and requires significant reforms to remain viable. King remarked that arbitrators are typically conservative and unlikely to implement the sweeping changes Canada Post seeks in a new agreement.

Savage concurred, stating that binding arbitration is not a long-term solution for Canada Post's issues. He noted that Canada Post's forced vote was a gamble that did not pay off, but the company still holds leverage. Canada Post could impose new contract terms unilaterally or begin layoffs as its business struggles. "Both of those strategies would put tremendous pressure on the union to reach an agreement," he said.

Hajdu stated that the federal government expects both parties to return to negotiations and find a resolution promptly. Given the ongoing financial challenges, Savage anticipates that the government may seek to restructure Canada Post's mandate after the labor dispute concludes. This could involve expanding community mailboxes or discontinuing daily door-to-door delivery.

In this context, Savage emphasized that the negotiations are less about immediate victories and more about long-term survival for both Canada Post and the union. "There is a storm brewing for both Canada Post's management and the union. Getting over this hump is important, but it pales in comparison to what's coming," he said.