Canada Post posts Q2 loss and blames pay equity

Canada’s postal service lost nearly a quarter of a billion dollars in the second quarter, attributed to a huge payment it expects to make to settle a dispute over equity payroll with his biggest union.

Canada Post posted a pre-tax loss of $242 million in the second quarter, down dramatically from $27 million in the same period of 2017.

Nevertheless, Canada Post has left the door open for a major revision of these figures based on the results of the ongoing negotiations with the Canadian Union of Postal Workers (CUPW), which are aimed at reaching a settlement agreement. salary equity.

“A mediation process is underway to reach a negotiated settlement,” Canada Post said in a statement.

“When the process is complete, the Company will be able to disclose the financial impact of the agreement, which may differ significantly from the estimates this quarter,” it added.

The Crown Corporation and CUPW have agreed to begin mediation talks in early June, with the goal of reaching an agreement by the end of August on factor compensation in suburban and suburban areas. rural.

These talks are underway, but referee Maureen Flynn has warned that she will impose a final decision if the two sides fail to reach an agreement by August 31.

Urban factors and rural factors

The conflict is rooted in the perceived wage inequalities between predominantly male urban factors and their counterparts in rural and suburban areas, mostly women.

Mike Palecek, National President of CUPW, said the Company’s loss in the second quarter included a “one-time payment” that it will have to make to be in compliance with the law.

For decades, Canada Post has treated rural and suburban factors as second-class workers.

Mike Palecek, CUPW National President

“Finally, justice is on the horizon for these workers. Canada Post can no longer avoid pay equity, “said Palecek.

CUPW and Canada Post are also in the process of negotiating a new collective agreement. The previous one expired in December 2017, and the union asked its members to vote on pressure tactics before September 9th.

Canada Post also announced Tuesday that it had an overall pretax loss of $ 172 million for the first half of 2018, compared with a profit of $77 million for the same period last year.

The Company stated that the losses occurred despite a nearly 20% increase in second quarter package delivery revenues, compared to the same three months in 2017.

Thanks to the popularity of online shopping, the company’s parcel service has grown steadily in recent years.

Some industry observers have predicted that parcel revenues may increase further, particularly if negotiations to update the North American Free Trade Agreement (NAFTA) result in an increase in the quantity of goods shipped. United States exempt from tariffs.

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