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Canada Post drops Monday lockout of CUPW workers

It’s likely that mail service will continue in the immediate future following the announcement Sunday by Canada Post that it has withdrawn its lockout notice.

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The announcement came hours after Canada Post said its latest offer presented on June 25 was fair and reasonable and that it still hoped to negotiate a deal with the union.

“I am pleased that there has been movement at the bargaining table and that progress is being made”, MaryAnn Mihychuk, minister of employment, workforce development and labour, said in a statement released Sunday night.

The 50,000 employees of the Canadian Union of Postal Workers have been without a contract since the beginning of the year, and have been locked in bitter negotiations with the crown corporation.

“I remain hopeful that an agreement can be reached by the parties”, she added.

The two sides are far apart on two major issues – wages and pensions – after seven months of negotiations, including 60 days of conciliation talks and more than 30 days with federal mediators.

“What Canada Post has put forward is a reasonable approach that will end the uncertainty immediately and allow for meaningful discussions at the bargaining tables”, the company said in a statement Friday.

“The Government of Canada has contingency plans in place in the event of a work stoppage”.

The union also says it wants to close the gap between what its urban carriers are paid, and its rural ones.

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The new plan helps reduce costs to the company that is now facing a $6 billion pension solvency deficit.

Canada Post set to avoid lockout