BUSINESS
06/07/2011 07:45 EDT | Updated 08/07/2011 05:12 EDT

Postal Strike Hits Moncton, Victoria: Canada Post Rejects Latest Union Offer

CP

THE CANADIAN PRESS -- Moncton, N.B., and Victoria are the latest Canadian cities to be hit by the rotating postal strikes, which are now into the fifth day.

The Canadian Union of Postal Workers told its members Monday evening that Canada Post had made some positive moves, but also took several steps backwards.

The Crown corporation rejected the latest proposal from negotiators for 50,000 urban workers and backed away from a thorny proposal to create more part-time positions to deal with a decline in mail.

The union said pensions and disability coverage remain sticking points.

Canada Post spokesman Jon Hamilton says the union's strike activity in Victoria and Moncton "is completely unnecessary" and that Canada Post continues to negotiate.

The company claims most of the postal network continues to operate despite the strikes.

But businesses have warned that the system will soon get "gummed up" once the walkout expands to larger centres.