when Canada Post workers go on strike the vast majority of letter mail just doesn't get delivered then think about packages Canada Post figures with 55,000 workers on strike since mid November what do we want when do we want it now it's missed out on an estimated 10 million package deliveries and Canada Post needs your business because it just announced a third quarter loss of more than $300 million $315 million $315 million and The Negotiator tasked with bringing the two sides together to find a resolution to this contract dispute mediated talks between Canada Post and the union representing its workers have been suspended yeah it gave up the two sides apparently weren't even on the same planet and this is after days of direct mediated talks I'm extremely frustrated with this uh turn of events these negotiations have not budged have not budged in over intervention over8 days under a special mediator so why is this negotiation proving so difficult and how might it end so how far apart is far apart about 12 a half% Canada Post has proposed an 11. 5% wage increase spread out over 4 years whereas the union has asked for 24% over that same time period unions are doing this everywhere inflation's been devastating for members they can't pay their groceries or their rent postal workers have fallen far behind as many people within the society have fallen behind we've seen inflation go through the roof so let's look at inflation if the goal of a pay increase is to beat inflation and we Peg it at its ideal Target 2% per year that's 8% over 4 years Canada posts offer beats that but when has inflation ever been at 2% right well last month it was exactly at 2% and the month before it was actually lower at 1. 6% but take the whole year into account and inflation so far in 2024 is 2 1.
2% last year 3. 9% the year before 6. 8% and it was 3.
4% the year before that altogether that's a 16. 6% increase in the cost of living over 4 years in that sense 11. 2% doesn't seem to cut it doesn't so solidity with our members off for a week we've already lost 2% of our annual wages any wage increase will not make up for that 2% but we're fighting for the survival of good jobs for Canadians and 11.
5% is on the low side of what public and private sector unions in general have negotiated the last few years the federal government actually keeps track of major labor negotiations and if we zero in on the transportation industry which includes Canada Post we can see the average annual wage settlement this year and the last reached as high as 4. 2% per year that equals on average a 16. 8% wage increase over four years and if you look at other prominent negotiations this year there's certainly room to negotiate up take doc workers in Montreal who are also federally regulated the maritime employers Association tabled what it called its final comprehensive offer on Thursday and locked out nearly 1200 workers after they rejected it they were offered 12% over 4 years and rejected it demanding instead 20% to match offers made to their counterparts in Halifax and Vancouver it's not clear Montreal doc workers will get what they're asking for but when it comes to Canada posts side of the story they have a very simple response to their unions wage demand we're already broke Canada Post has been hemorrhaging money for years and I know this because I've gone through their annual financial statements they're down $748 Million last year alone the year before that 548 million - 490 million - 779 - 153 - 276 over the last 6 years Canada Post has lost almost $3 billion and unlike other Crown corporations this is a company that has to turn a profit because it doesn't get government money here's the state of their business in their own words letter mail volumes have eroded significantly there has been a major decline in our cash position Canada post's financial situation is unsustainable its long-standing role is under significant threat and we expect to fall below our required operating and Reserve cash requirements by early 2025 that last one means they'll be out of money by early next year this is when Canada Post makes most of its money so the rest of the year if it's losing money it's making money in these few weeks between kind of Black Friday and Christmas and New Year's and mail delivery is labor intensive you need people making those rounds and we can see in Canada post's latest annual report salaries and benefits make up the majority of all of their operating costs almost 4.
