Canada Post and the Canadian Union of Postal Workers (CUPW) are set to meet with a federal mediator today, following two canceled meetings. This negotiation involves the union representing approximately 53,000 workers and comes amid ongoing disputes over contract terms that have persisted for more than 18 months.

The meeting is expected to address the union's latest contract proposal. CUPW national president Jan Simpson expressed hope for progress, stating, "Hopefully, at this meeting, we’ll finally see some responses from them. Your negotiators remain committed to reaching ratifiable collective agreements at the bargaining table."

The Crown corporation has accused the union of hardening its stance and introducing new demands, which Canada Post claims would significantly increase operational costs. In a statement, Canada Post noted, "Unfortunately, CUPW has either maintained or hardened its position on many items and added new demands, and the gap between the parties remains substantial."

Despite acknowledging that CUPW agreed to include part-time employees for weekend deliveries, Canada Post described the union's proposal as unworkable. The Crown corporation stated, "While the union’s offers included some part-time employee component to address weekend delivery, CUPW’s proposed approach remains unaffordable, problematic and complex to manage."

The backdrop to these negotiations includes a recent financial report from Canada Post, which revealed a loss of $407 million in the second quarter. The report highlighted a significant decline in parcel delivery revenue, with a drop of $288 million and 25 million fewer packages shipped compared to the previous year.

Earlier this month, CUPW members overwhelmingly rejected Canada Post's so-called "final" contract offer, which included a proposed 13 percent wage increase over four years and a $1,000 signing bonus. The rejection was facilitated by a vote overseen by the Canada Industrial Relations Board, following an order from federal jobs minister Patty Hajdu.

CUPW members have been in a legal strike position since May 23, but their actions have been limited to a ban on overtime work. The union has indicated that any future agreements will require Canada Post to demonstrate significant movement from its previous positions.

In May, mediator William Kaplan released a report suggesting that Canada Post was effectively insolvent and recommended several operational changes, including the use of community mailboxes and the elimination of home delivery for most items. He also proposed expanding parcel delivery to seven days a week, utilizing part-time and temporary employees.

As negotiations continue, both sides remain under pressure to reach an agreement that addresses the financial realities facing Canada Post while also meeting the needs of its workers.