A decades-old promise that protects veteran Canada Post workers from layoffs is no longer sustainable, according to a federal report released by a government-appointed mediator, reports Blacklock’s Reporter.In a newly published Report of the Industrial Inquiry Commission, mediator William Kaplan said a 1985 clause guaranteeing job security for postal workers with more than five years seniority has become a burden for the Crown corporation. The clause, part of the Urban Collective Agreement, prevents Canada Post from laying off surplus staff and instead requires it to continue paying workers even when no work is available.“Canada Post agreed to this language,” wrote Kaplan. “It is a contractual term. CUPW is fully entitled to rely on it and enforce it. Canada Post might no longer like this provision, but it agreed to it. It is a legal obligation.”.“Instead, surplus employees had the choice of accepting a different position or agreeing to a voluntary layoff,” wrote Kaplan. “Where the employee elected to accept a different position, Canada Post must maintain the employee’s salary even if there are no available positions until one becomes available.”“In Canada Post’s view, paying employees when there was no work for them to perform was untenable,” wrote Kaplan. “Relying on natural attrition was not an answer that Canada Post could accept as organizational changes were required immediately.”The Canadian Union of Postal Workers (CUPW) has long treated the no-layoff clause as non-negotiable, calling it the result of years of hard bargaining. Kaplan acknowledged its importance, writing, “Job security was sacrosanct … CUPW is fully entitled to rely on it and enforce it.”“Agreements made in collective bargaining must be given effect,” wrote Kaplan. “That is a cardinal principle of Canadian labour law. Canada Post wants the ability to adjust its workforce, but it must negotiate this or find workarounds such as agreements with CUPW about voluntary exit and early retirement incentives, including pension bridging.”.Kaplan’s findings form part of a broader report concluding that Canada Post is “effectively insolvent or bankrupt” and faces yearly losses in the half-billion dollar range. The report recommends deep service cuts, though the federal cabinet has yet to respond.CUPW has warned that such cuts would violate the Canada Post Corporation Act. In 2014, CUPW lawyers told the Federal Court that Canada Post’s monopoly comes with a duty to provide mail delivery as a public service.“By granting Canada Post a statutory monopoly, the Act implicitly and necessarily requires that Canada Post perform its public service of delivering letter mail to homes,” wrote CUPW lawyers to the Federal Court in 2014.
