With all the rhetoric surrounding the Conservative government's introduction of back to work legislation, it's worth looking at previous government reaction to work stoppages at Canada Post.
There is a long history of troubled labour relations at the corporation, for example, there were some 19 strikes, lockouts and walkouts between 1965 and 1997, but major postal shutdowns are rare.
For instance, the last time this union went on a full scale strike was in the fall of 1997. At that time, the strike ended two weeks later after the Liberal government brought in back to work legislation.
Fourteen days is not a long time, but it was considerably shorter than a couple of previous strikes which lasted 43 days in 1975 and 42 days in 1981. In 1978, the union went on a legal strike and was legislated back by the Liberal government on the very first day.
The scenario today isn't much different, except the public is far less inconvenienced. Technology has replaced the crucial need for the delivery of paper bills, email is replacing "snail mail" and there has been little outcry from average Canadians about the impact of the strike on their lives.
The present mail disruptions began on June 2, 2011. This involved a series of rotating strikes which began in Winnipeg. On June 14, 2011 Canada Post announced a lockout. With the introduction of the present legislation, mail disruption, full or partial (whether union or management generated) will have lasted approximately 23 days unless the NDP manages to delay the legislation further.
One can certainly argue the difference between a legal strike and a lockout, but in both cases there was plenty of warning that either the union or the corporation was going to take action. One would assume that the majority of businesses that rely on Canada Post would have taken steps to prepare for a disruption in service. For example, banks, department stores, utilities and others blitzed their customers with advertisements on how to sign up for online billing. There are also plenty of other services able to pick up some of the slack including courier companies, rail, and truck and bus lines.
There is always a cost to a strike and during this strike Canada Post announced it was losing millions of dollars. There is nothing unusual in that as that is one of the pressures a strike places on management, just as loss of wages hurts the striking workers. Its one of the reasons both sides negotiate a settlement.
For its part government has a range of options at its disposal including mediation and arbitration. This time around the government is using a sledge hammer when a full and complete shutdown of postal services has only lasted 11 days. One can question the necessity of any intervention at this point.
Certainly there is an economic impact from this strike, there is from every strike. On the one hand the government keeps telling us that we have the strongest economy of western nations, now they are telling us one full postal shutdown lasting just 11 days will have dire consequences for the nation. I might have missed it, but I don't recall seeing any economic numbers to back up their claim. How many other strikes will they intervene in now? Every strike impacts on the economy of an area, region or town.
Is it the pending summer parliamentary recess that is driving the government agenda? To allow the lockout/strike to continue into the break would have meant a potential recall of Parliament during the summer. Our MPs have worked a grand total of 34 days this session and are about to embark on an 87 day break. Would it have hurt them to come back for a few days if there was an absolute breakdown in negotiations? If given more time could there have been a negotiated settlement such as happened in 2007?
The need for government intervention also brings up another issue. Should the government be looking at privatizing Canada Post as has been done in Germany? Whatever the case, the full repercussions from this lockout/strike haven't been felt yet.
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For me to ship the EXACT same package to the United States via Fed Ex, it will cost me $19.77 to ship it via Fed Ex International Ground, which is their cheapest option, and it will get there in about 5 business days. That certainly isn't cheaper than Canada Post. In fact, that is about 2.6x more expensive than Canada Post.
As a small business, you have the potential to save about 15% at the very most on *certain* types of packages. Even if you saved 15% on $19.77, it would still cost $16.81 to ship, and that's only if it falls into a "Save 15%" bracket, depending on the type of package. That's still 2.2x more expensive than Canada Post.
So I have no idea where you are getting your prices/information from...
This strike will give more momentum to electronic mail.
This is my opinion
Andrew Spence
BTW, for those of you who think the post office is expensive to run, they made a fairly substantial profit last year so this is not about cutting costs to pull out of debt.
Ever heard the story of dividing up property? One person divides the property, the other gets the first choice.
"Back to work legislatioÂn with mandatory arbitratioÂn would have worked much better." And that is exactly what the law says.
For business owners with companies being paid by customer checks in the mail, this is an inconvenience even with the warnings. My company mailed checks to other small businesses. It is so typical to ignore the little people of business. We only hire under 10 people each typically and we do not have the time to write coherent letters to papers or show up at organized protests. I am grateful to have at least this little platform to try and get across the small business life and our little webs that get bashed by these big happenings. The other debate owners have is why are we bothering to run our little businesses where we do not get to take home much some months and watch our employees get more than we do? Then we find out how much postal workers make, sick and vacation pay, pensions and dental benefits, hours worked, over time pay. It is discouraging for us and we do get angry about it. My teens are graduating and I say to them get a union job or govt job. The great good of public unions paid for with tax payer money, or subsidized with tax payer money, unfortunately does crowd out the private sector. My children are entrepreneurial, both sets of grandparents were entrepreneurial but I am reading this political environment where I can no longer able to compete with these massive unions.
Look to see union-busting legislation a la Wisconsin, next.