Canada Post workers spend the last hours on the picket line before returning to work after the government ordered them to end their rotating strike Tuesday, November 27, 2018 in Montreal. (THE CANADIAN PRESS/Ryan Remiorz)

Canada Post workers spend the last hours on the picket line before returning to work after the government ordered them to end their rotating strike Tuesday, November 27, 2018 in Montreal. (THE CANADIAN PRESS/Ryan Remiorz)

Canada Post warns of huge losses as postal staff ordered back to work

Crown corporation says it recorded a loss before tax of $94 million for the third quarter of 2018

Canada Post on Tuesday revealed deeper losses it’s booking because of a massive pay-equity order this year, while the federal government insisted back-to-work legislation that sent striking postal workers back to their jobs is constitutional.

In releasing its third-quarter financial results, Canada Post highlighted how it was bleeding red ink even before its unionized workforce started rotating strikes last month.

The losses, it said, were a direct result of a historic pay-equity ruling announced in September, which awarded suburban and rural postal employees a 25-per-cent pay hike.

“Canada Post recorded a loss before tax of $94 million for the third quarter of 2018, mainly due to the costs of implementing the final pay-equity ruling,” the corporation said.

The arbitrator’s decision was a hangover from the last round of contract negotiations between CUPW and Canada Post.

The agency said it expected pay equity would cost it $550 million by the end of the year, including a charge of $130 million that was put on its books in the final quarter of 2017.

READ MORE: Canada Post strikes hit Lower Mainland, even as Senate passes back-to-work bill

Combined with the costs associated with the rotating walkouts that began Oct. 22 and came to a forced end on Tuesday, Canada Post said it expected to end 2018 with a loss, and that pay equity would result in ongoing annual costs of about $140 million.

While CUPW members celebrated the pay-equity award, a key issue in its ongoing labour dispute with Canada Post has been the treatment of those same rural and suburban mail carriers, known as RSMCs. They’re more likely to be female, and historically have been paid less, than their urban counterparts.

The union vowed Tuesday to continue fighting for equality for RSMCs, warning of potential court action over the government’s back-to-work legislation, Bill C-89.

It will ultimately be up to the courts to decide whether the legislation is constitutional, Labour Minister Patty Hajdu said on her way into a morning meeting with her cabinet colleagues, should it be legally challenged by CUPW.

“We’re confident that this was the appropriate time to move forward with this legislation,” Hajdu said. “There was a significant, growing economic harm to the country, small businesses were struggling, rural and remote communities were struggling. There really wasn’t a way forward for the two parties. They were at a complete impasse.”

The bill received royal assent on Monday after senators approved it by a vote of 53-25, with four abstentions.

READ MORE: B.C. postal worker accuses Canada Post of questionable tactics during strike

CUPW said it is exploring all options to fight the legislation.

“After 37 days of rotating strikes, unconstitutional legislation has removed the right to strike for postal workers,” it said in a statement. “Legal strike action ends at noon today, but the struggle is not over.”

The union also told its members to return to their regularly scheduled shifts at noon Tuesday but warned it would soon call on its allies and members for a campaign that includes “mobilizations, demonstrations and non-violent civil disobedience.”

Canada Post said Tuesday that it could not live up to its normal delivery standards through the remainder of the year, and going into January 2019, as a result of backlogs of mail and parcel deliveries at its main sorting plants in Vancouver, Toronto and Montreal.

The Canadian Press

Like us on Facebook and follow us on Twitter

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

(News files)
Pitt Meadows receives $3.7 million for COVID-19 costs

Provincial grant will cover funding shortfalls and new expenses

(Ronan O’Doherty/The News)
Fire at house on Creekside in Maple Ridge

Residents putting out fire inside garage as firefighters arrive

Tristan points to all the spots on a map of Canada his joke book has been sent. (Special to The News)
Pitt Meadows boy raises $6,000 for local charities through sales of joke book

Tristan Kennedy’s A Reason to Smile sold more than 500 copies across Canada, and around the world

Public input is being sought for a plan to widen Highway 7 between 266 Street and 287 Street. (Colleen Flanagan/The News)
Highway widening planned for Maple Ridge

Ministry of Transportation and Infrastructure asking public for input

Dr. Penny Ballem, a former deputy health minister, discusses her role in leading B.C.’s COVID-19 vaccination program, at the B.C. legislature, Jan. 22, 2021. (B.C. government)
B.C. holds steady with 407 new COVID-19 cases Tuesday

14 deaths, no new outbreaks in the health care system

A Cessna 170 airplane similar to the one pictured above is reported to be missing off the waters between Victoria and Washington State. Twitter photo/USCG
Canadian, American rescue crews searching for missing aircraft in waters near Victoria

The search is centered around the waters northeast of Port Angeles

Jonathon Muzychka and Dean Reber are wanted on Canada-wide warrants. (Courtesy of Victoria Police Department)
Convicted killer, robber at large after failing to return to facility: Victoria police

Dean Reber, 60, and Jonathon Muzychka, 43, may be together

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

B.C. Premier John Horgan listens during a postelection news conference in Vancouver on Sunday, Oct. 25, 2020. THE CANADIAN PRESS/Darryl Dyck
30% of B.C. recovery benefit applications held up in manual review

The province says 150 staff have been reassigned to help with manually reviewing applications

Adam Dergazarian, bottom center, pays his respect for Kobe Bryant and his daughter, Gianna, in front of a mural painted by artist Louie Sloe Palsino, Tuesday, Jan. 26, 2021, in Los Angeles. (AP Photo/Jae C. Hong)
Kobe Bryant’s presence remains strong a year after his death

Tuesday marks the grim anniversary of the crash that took their lives

Surrey RCMP are investigating after a pedestrian was struck and killed at 183 Street and Highway 10 Friday night. (File photo)
Modelling of predicted transmission growth from the B117 COVID-19 variant in British Columbia. (Simon Fraser University)
COVID-19 variant predicted to cause ‘unmanageable’ case spike in B.C: report

SFU researchers predict a doubling of COVID-19 cases every two weeks if the variant spreads

RCMP officers wearing face masks to curb the spread of COVID-19 stand by. (THE CANADIAN PRESS/Darryl Dyck)
RCMP appeal for witnesses after hit-and-run leaves girl, 17, in critical condition

The Metro Vancouver teenager was found unconscious and critically injured after being hit: police

Most Read