Industry News – Canada Post – Possible Disruption – Update

Canada Post has issued their 72-hour lockout notice to the Canadian Union of Postal Workers (CUPW); with a possible work stoppage this Friday.

The last time Canada Post had a work stoppage was in 2011 with rolling strikes that started June 3rd and ended when Parliament implemented back-to-work legislation  on June 27^th almost a month later.  Below is what you need to know with links to where you can get more information..

“On July 4, 2016, Canada Post informed CUPW that the offers the Corporation presented on June 25, 2016 are considered final, as they represent a fair and reasonable framework for settlements. The company also informed CUPW that the union’s more than $1 billion in demands were unaffordable and therefore rejected.

With customers already making plans to minimize disruption to their businesses, Canada Post is already feeling the impact:

• “Nearly all of our largest e-commerce customers have already moved most or all of their parcel volumes to other carriers, resulting in a volume decline of at least 75% from these customers.”
• “The number of parcels arriving at our largest plants via transport trucks has declined to the point where there often are not enough parcels to last an entire processing shift.”
• “Lettermail is down in many facilities by as much as 50% and over the weekend, commercial customers deposited half the mail they usually deposit.”

“The Corporation must now respond to the rapidly deteriorating volumes and the financial impact to the business, using the means provided in the Canada Labour Code.”

What You Need To Know:

• In Canada, “essential” mail such as Old Age Security, Canada Pension Plan, Working Income Tax Benefit and the Canada Child Benefit cheques will still be delivered even during a service disruption.

• For US –  Impacted classes during the possible disruption – Mail and Packages to Canada – First-Class Mail International^®, First-Class Package International Service^®, International Priority Airmail, International Surface Air Lift™, Priority Mail International^®service, and Priority Mail Express International^® service.

Alternatives for Clients During the Disruption:

• Alternate carriers such as Canpar®, FedEx®, UPS® *Using an alternate carrier may result in higher costs – Check online with the carriers.
• For US Clients – USPS® offers Global Express Guaranteed® (GXG®) – international transportation and shipping provided by FedEx Express

As always, we will keep you informed with any updates on this possible service disruption as they become available.