Canada’s postal system will see a new form of pressure from workers this week: the Canadian Union of Postal Workers (CUPW) says it will end its nationwide overtime ban and, beginning Monday, September 15 at 12:01 a.m. local time, stop delivering Neighbourhood Mail — the unaddressed flyers many retailers use to reach customers. Addressed letters and parcels will continue to move, making this a partial strike rather than a full work stoppage.
In response, Canada Post said it is immediately suspending acceptance of Neighbourhood Mail at plants, depots and post offices, adding that pieces already in the network will be held securely until further notice. The Crown corporation stressed that all other products are being processed and delivered as normal.
The union’s shift in tactics comes nearly two years into contentious bargaining. CUPW President Jan Simpson urged Canada Post to return to the table, saying members had already rejected the company’s proposals in a government-forced vote earlier this summer. Canada Post, for its part, called the new action “disappointing,” warning it will affect thousands of businesses that rely on flyer delivery and reduce supplement pay for employees who deliver those items.
The move also aims to narrow the dispute’s footprint on everyday Canadians. Overtime has been banned since late May; replacing that measure with a targeted pause on flyers is meant to keep letters and parcels flowing while maintaining leverage in talks, the union said. Canada Post maintains the gap between the parties remains “substantial” after CUPW’s latest proposals.
Financial pressures are adding urgency. Canada Post recently reported a $407 million loss before tax in the second quarter, which it partly attributed to labour uncertainty that has driven some customers to alternatives. Business groups also cautioned that curbing flyer delivery erodes a low-cost marketing option heading into the crucial holiday season.
What changes for mailers and shoppers today: retailers and advertisers can’t induct new Neighbourhood Mail until further notice; items already tendered will sit in secure hold; letters, bills and parcels should still be delivered. The parties have not announced new bargaining dates, but both say they want a negotiated agreement before year-end.
Sources: FreightWaves, Canada Post, Global News, CityNews, Winnipeg Free Press, CKDR, CNW
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