Canada Post temporarily laying off striking workers, union says

The union representing Canada Post workers has accused the Crown corporation of laying off striking employees as the labor action by more than 55,000 workers nears the two-week mark.

In a notice to members posted on Monday, the Canadian Union of Postal Workers (CUPW) called the layoffs a “scare tactic” and stated that it is investigating the situation.

Canada Post spokesperson Lisa Liu confirmed the layoffs, describing them as temporary. She added that the organization had informed some employees that collective agreements were no longer in effect, and their employment conditions had changed in accordance with the Canada Labour Code, referring to the section covering lockout notices.

“Our business has been significantly impacted leading up to and throughout this labor disruption. We have taken steps to adjust our operations,” Liu said.

Neither Canada Post nor the union provided details about the extent of the layoffs.

Earlier in November, Canada Post issued a lockout notice but clarified that it did not intend to lock out workers. Instead, the notice was issued to allow the company to make operational adjustments in response to the strike's effects.

Labor experts have said the layoffs are an unusual move. “Given that the workers aren’t being paid while they’re on strike, it’s unclear why they’re doing it,” said labor lawyer Deborah Hudson. She pointed out that the Canada Labour Code protects workers from being laid off because of their participation in a strike. Hudson warned that if the layoffs continue, it would likely lead to legal action from the union, such as grievances or complaints of unfair labor practices.

Canada Post would then need to demonstrate that the layoffs were for reasons unrelated to the strike, she said.

David J. Doorey, a professor of labor law at York University, also questioned the layoffs, suggesting that Canada Post might be violating the labor code. “If CUPW challenges the layoffs, Canada Post will need strong evidence to prove they are unrelated to the strike,” he said.

Liu explained that the strike has essentially halted Canada Post's operations. The absence of collective agreements allows Canada Post to adjust operations according to its business needs. “This enables Canada Post to adjust its operations based on its operational realities and business needs,” Liu stated.

Hudson speculated that the layoffs could be a preemptive measure in anticipation of the end of the strike, with Canada Post possibly expecting reduced workload as other delivery services handle Black Friday deliveries. “Maybe they’re anticipating a drop in workload ahead of time,” she said. “The question is, can they prove that justifies these temporary layoffs?”

Striking workers have a legal right to return to their positions once the strike concludes, said Doorey, “unless those jobs no longer exist.” He added that a lack of work following the strike could result in temporary layoffs, but this remains hypothetical for now.

Canada Post has stated it has missed out on delivering millions of parcels due to the strike. A key issue in the bargaining process has been the union's push to expand parcel deliveries into the weekend, but disagreements remain over how to implement this.

The company has been struggling to compete with other delivery services, posting a $315-million loss before tax in its third quarter. It has proposed weekend deliveries as a means of boosting revenue.

The strike shows no signs of ending soon. The federal labor minister reported on Wednesday that mediation talks, led by an Ottawa-appointed mediator, had stalled due to significant gaps between the two sides. The mediation talks were temporarily suspended, and the government does not plan to intervene.

In a statement, Canada Post spokesperson Phil Rogers said the corporation is “considering its options to move negotiations forward with greater urgency and remains committed to negotiating new collective agreements.”

Meanwhile, CUPW President Jan Simpson stated that the union is fighting to protect good full-time jobs.