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

Just Posted

Japanese students visit LSS for cultural exchange

Ladysmith families hosted 35 students from Furukawa Gakuen High School

Campbell River mom’s iPhone containing priceless photos stolen from Victoria hospital parkade

The phone contained photos, heartbeat recordings of her late son

PHOTOS: Old Time Christmas 2019

Friday, December 6 was Ladysmith’s Old Time Christmas. Here are some of the highlights from the night

Student artwork on display in ‘Well Lit’ installation

Thoughtful Place Design, 49th Parallel, and Festival of Lights came together to showcase student art

Ladysmith set to star in new Syfy series: Resident Alien

Ladysmith will play the role of Patience, Colorado in the series

VIDEO: Led by ‘Marriage Story,’ Netflix dominates Golden Globe noms

Netflix flexed its muscles across all categories, just as it is girding for battle with a host of new streaming services

B.C. VIEWS: An engine that hums right along

First Nations are leading a new surge of investment in B.C.

74% of 911 calls are from cellphones, so know your location: E-Comm

Cell tower triangulation generally only narrows location down to the block someone is calling from

No negligence in RCMP actions in B.C. teen’s overdose death: IIO

Police acted properly when they responded to the first reports of the boy being in distress

320 years since the ‘Big One’ doesn’t mean it’s overdue: B.C. professor

‘It could happen today, tomorrow or 100 years from now’

Would you leave your baby alone to go to the gym? This Canadian dad did

The man identifies just as a divorced dad with a nine-month-old baby

B.C. coroner asking for help identifying man found dead in Peace region

Mounties have deemed the man’s death not suspicious and believe he died earlier this year

Lawyer competence includes knowledge of Indigenous-Crown history: B.C. law society

All practising lawyers in B.C. will be required to take a six-hour online course covering these areas

Wealth of Canadians divided along racial lines, says report on income inequality

One interesting finding was that racialized men have a higher employment rate than non-racialized men

Most Read