Canada Post Workers Enforce Overtime Ban as Contract Dispute Deepens

As contract negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW) continue to stall, over 55,000 employees across the country have been called on to refuse all overtime work in a legal strike action aimed at pressuring the Crown Corporation without halting services entirely.

Announced Thursday night, the nationwide overtime ban is being implemented as an alternative to a full strike. CUPW President Jan Simpson said the decision was made to limit disruption to the public while also protecting union members from financial loss. Workers are now instructed to cap their work at eight hours per day or 40 hours per week, even if delivery routes remain unfinished.

“The collective agreement has expired, and forced overtime is no longer enforceable,” the union said in a statement, emphasizing that workers have a legal right to participate in the overtime refusal without fear of discipline. Temporary and part-time employees are also subject to the same daily and weekly hour limits.

The union’s decision follows Canada Post’s rejection of a request for a two-week delay in strike action. While the union continues to review the latest offer, it has already deemed it insufficient. Major sticking points remain unresolved, including wages, weekend work, cost-of-living allowances, dynamic routing practices, and even a five-minute wash-up break before meals.

Canada Post acknowledged the overtime ban on Friday, cautioning customers to expect service delays. The company noted a significant drop in mail and parcel volumes, attributing the decline to public uncertainty around a possible strike. “Further escalation would have serious consequences for employees, small businesses, and millions of Canadians,” the corporation stated. “Both sides must stay focused on reaching an agreement.”

Last year’s 32-day strike, which ended through federal intervention, left Canada Post with a backlog of 12 million undelivered parcels. This time, CUPW says it is taking a more measured approach to avoid such disruption,  but warns that further actions could follow if Canada Post alters working conditions, suspends benefits, or initiates layoffs.

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Since 2018, Canada Post has accumulated over $3 billion in pre-tax losses. With another major loss expected for 2024, the federal government stepped in earlier this year with a repayable funding package of $1.034 billion to prevent insolvency.

The Industrial Inquiry Commission’s recent report on the negotiations has also sparked division. While Canada Post has embraced the report’s recommendations, CUPW claims the findings are biased in the corporation’s favor.

For now, the union urges its members to stand firm. “This is a legal strike action. You cannot be disciplined,” the union said. “When you hit the maximum in a day or week, just say no.”