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

Students from Cedar Hill Middle School play and hold a sign to protest proposed music cuts to school band programs in the Greater Victoria School District, during a Monday event. The district is facing a massive deficit and is considering a number of options for cutting costs. (Photo courtesy Laura Alcaraz-Sehn)
Massive student demonstration planned to protest Greater Victoria school band cuts

Band students from 14 SD61 schools will be at major intersections Thursday after school

Island Health has reported a COVID-19 exposure at Pacific Christian Elementary School on April 12. (Google Streetview/Screenshot)
COVID-19 exposure reported at Saanich elementary school

Pacific Christian Elementary School experienced exposure on April 12

A man accused of choking a 15-year-old in his tent in Beacon Hill Park Tuesday night has been arrested by Victoria police. (Black Press Media file photo)
Man accused of choking, sexually exploiting 15-year-old in Victoria tent arrested

Police arrested the 38-year-old in Beacon Hill Park Wednesday afternoon

Reuben Forsland in his East Sooke studio with the guitar he crafted from hemp wood that he hopes will start a conversation about sustainability. (Rick Stiebel - Sooke News Mirror)
East Sooke artisan strikes a chord with custom guitars

Guitars include wood from Hendrix childhood home in Seattle

Jessica Sault of the Nuu-chah-nulth Nation is hosting a virtual cedar weaving workshop through Royal Roads University on April 25. (Black Press Media file)
Cedar trees weave deeply into lives of coastal First Nations communities

Jessica Sault of the Nuu-chah-nulth Nation hosts virtual cedar weaving workshop through Royal Roads

Canadian Prime Minister Justin Trudeau and United States President Joe Biden smile as they say farewell following a virtual joint statement in Ottawa, Tuesday, February 23, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau pledges to cut emissions by 40% to 45% by 2030, short of U.S. goal

Trudeau announced target during a virtual climate summit convened by U.S. President Joe Biden

(Black Press Media file photo)
POLL: Have rising prices caused you to give up hope of buying a home?

Do you have a spare 50 grand or so kicking around (have… Continue reading

Anyone with information on any of these individuals is asked to call 1-800-222-TIPS (8477) or visit the website victoriacrimestoppers.ca for more information.
Greater Victoria Crime Stoppers wanted list for the week of April 20

Greater Victoria Crime Stoppers is seeking the public’s help in locating the… Continue reading

Letisha Reimer, 13, was killed Nov. 1, 2016 in a stabbing at Abbotsford Senior Secondary.
Second-degree murder conviction stands for Abbotsford school killer

Judge finds that Gabriel Klein is criminally responsible for death of Letisha Reimer

FILE – RCMP officers wearing face masks to curb the spread of COVID-19 stand by as protesters opposed to the Trans Mountain pipeline expansion block rail lines, in Burnaby, B.C., on Friday, November 27, 2020. THE CANADIAN PRESS/Darryl Dyck
‘Very scary’: B.C. travel rules too vague, shouldn’t involve police, civil liberties group says

BCCLA said that speaking with communities could have avoided top-down approach

Ocean Legacy Foundation members conduct a shoreline pollution cleanup in Vancouver. (OLP)
It’s time to end ‘suffocating’ plastic pollution along B.C. shorelines, advocates urge

This Earth Day, Ocean Legacy Foundation is launching a free educational platform to educate the public about plastic pollution

A teacher-librarian in Nanaimo was fired in 2019 for checking out an age-inappropriate graphic novel to a student. The discipline agreement was published Wednesday, April 21. (News Bulletin file photo)
B.C. teacher-librarian fired for checking out too-graphic graphic novel to student

Teacher had been previously disciplined and suspended on two occasions

Aria Pendak Jefferson cuddles ChiChi, the family cat that ran away two years ago in Ucluelet. The feline was missing until Courtney Johnson and Barry Edge discovered her in the parking lot of the Canadian Princess earlier this month. Aria and her parents were reunited with ChiChi in a parking lot in Port Alberni. (SUSAN QUINN/ Alberni Valley News)
An Island girl’s wish is answered as her cat came back

Courtenay family reunited with cat that went missing in Ucluelet in 2019

The Coastal Fire Centre is looking ahead to the wildfire season on Vancouver Island. (Phil McLachlan – Western News)
Coastal Fire Centre looking ahead at wildfire season on Vancouver Island

‘We’re asking people in the spring to be very careful’

Most Read