Canada Post Removes Signing Bonus in New Offer to Striking Workers

**Canada Post Removes Signing Bonus in New Offer to Striking Workers** Canada Post has presented a new contract offer to the union representing 55,000 striking postal workers, omitting a signing bonus due to financial constraints. The offer, announced on Friday, retains many elements from a previous proposal made in May but now includes provisions addressing anticipated job cuts. The Crown corporation stated that the decision to eliminate the signing bonus was necessary because of its deteriorating financial situation. "Due to the company's deteriorating financial situation, a signing bonus for employees is no longer on the table," Canada Post said in a statement. The latest proposal aims to support the company's modernization efforts while ensuring job security and benefits for employees in the long term. It includes a 13.59 percent wage increase over four years, health and retirement benefits, and up to seven weeks of vacation. In May, Canada Post had previously abandoned plans to introduce a new health benefits plan and modify retirement benefits. The current offer also maintains a cost-of-living allowance to protect workers from inflation. Negotiations for a new collective agreement have been ongoing for over a year and a half. The strike resumed last week after the government announced significant changes to Canada Post's operations. In response to the proposed restructuring, postal workers rallied outside the office of MP Julie Dabrusin in Toronto. The Canadian Union of Postal Workers (CUPW) stated that any changes to Canada Post should involve "meaningful consultation, not unilateral action." CUPW plans to thoroughly review Canada Post's latest offer to determine if it meets the needs of postal workers and the public. The federal government has directed Canada Post to implement changes to stabilize its finances, including ending home delivery and transitioning to community mailboxes for four million addresses. These changes are expected to save the corporation $400 million annually over nine years. The government has also instructed Canada Post to adjust mail delivery methods, allowing non-urgent mail to be transported by ground instead of air, which could save an additional $20 million each year. The modernization plan includes lifting a moratorium on closing rural post offices, affecting nearly 4,000 locations. However, the government has assured that rural, remote, and Indigenous post offices will remain operational where necessary. Canada Post has reported significant financial losses, including an $841 million loss in 2024. The corporation has not turned a profit since 2017 and is projected to lose $1.5 billion this year. In light of these financial challenges, Canada Post has proposed voluntary buyouts of up to 78 weeks' pay for employees. Layoffs will only be considered if other measures, such as attrition, do not meet reduction targets. The corporation has stated that it will prioritize workforce reductions through attrition before resorting to layoffs. The union has expressed outrage over the proposed changes and resumed its national strike following the government's announcement. Canada Post's offer allows laid-off employees to retain recall rights for two years and continue accruing seniority. The moratorium on closing rural post offices, part of the collective agreement, is expected to prevent the closure of 493 urban and suburban post offices, which Canada Post has deemed unsustainable.