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Tuesday, May 24, 2011

Canada Post blasts union demands

Canada Post has rejected its union’s latest contract proposal, calling it “a step backward” and warning it would add $1.4 billion in overall costs.

“We were surprised. We were disappointed after eight months of negotiating,” said Canada Post spokesman Jon Hamilton. “The costs would have to be either passed on to customers through higher rates, or taxpayers through a request for government support.

“That’s not acceptable,” he said.

Negotiators for the 48,000 members of the Canadian Union of Postal Workers are now examining the company’s counter-offer.

In an interview before receiving management’s response, national president Denis Lemelin said the union is concerned about creating a two-tier system. Workers now earn about $24 an hour, and Canada Post has proposed $18 an hour for new employees, Lemelin said.

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