Postal bill draws union ire

Wage increases, term determined in legislation
By Gordon Sova
|Canadian Labour Reporter|Last Updated: 06/24/2011

Canadian unions were rallying around the postal workers last week as it appeared unlikely they could come to an agreement with Canada Post and likely they would be legislated back to work.

The bill that would end the lock-out is similar in many respects to other back-to-work legislation: an immediate end to the work stoppage, binding arbitration and fines for disruptions. In other ways it is not: the binding arbitration will be final offer selection, four years of wage increases are specified in the bill and the constraints on the arbitrator’s discretion are numerous.

These constraints include making the collective agreement more consistent with “other postal services,” providing flexibility to ensure the viability of Canada Post, ensuring the solvency of the pension plan, and not forcing Canada Post to raise rates.