A bombshell announcement by the federal government sent postal workers away from the bargaining table and back to the picket lines. In St. John’s, union representatives say the changes would mean job cuts and service reductions, especially in rural areas.

St. John's

Canadian postal workers have gone on strike in response to federal government announcements of significant changes to Canada Post operations. The government plans to end all remaining home delivery and lift the ban on closing rural post offices, actions that could result in job losses but also substantial cost savings. These developments occur during ongoing, lengthy negotiations between Canada Post and the Postal Workers Union, with the union citing government interference as a key reason for stalled talks. 

Canada Post is currently facing major financial losses, projected to exceed a billion and a half dollars this year. The potential closure of rural post offices may particularly affect small and medium-sized businesses in those areas, as alternative shipping services are limited. The strike could also impact upcoming elections in Newfoundland and Labrador, where many voters rely on mail-in ballots.

Canadian postal workers race to the picket lines

To me, I think Canada Post and the government, they're connected here. And to me, I think they're trying to dismantle the public service. Postal workers raced to the picket lines last night after the federal government announced big changes to Canada Post. Ottawa is clearing the way to end all remaining home delivery and lifting a ban on the closure of rural post offices. The bombshell announcement landed in the midst of a long and bitter negotiation over a new collective agreement between Canada Post and the Postal Workers Union. Those talks have dragged on for more than 20 months. Letter carriers were on strike just last year before being ordered back to work. And all of this as Canada Post is losing millions of dollars a day on track to lose more than a billion and a half dollars this year. On the picket line this morning, the union says federal government interference is the reason contract negotiations have stalled. The government, once again, this is the third time in less than a year they have stepped on our bargaining rights. And that's why Canada Post hasn't been at the negotiating table because the government keeps bailing them out. And the thing is, the federal government is supposed to be listening to the people that put them in power, not suits taking care of suits. The changes announced by Ottawa could mean big job losses for postal workers, but it could also mean big savings. Ending home delivery for the fewer than one quarter of Canadians who still have it could save an estimated $400 million a year. But the other major change, closing rural post offices, could have a big impact in this province. Tom Cooper is a professor with Memorial University's Faculty of Business. He says much would depend on how rural is defined. Conception Bay South would be the great example of that, if you look, there's a number of different post offices along the Conception Bay Highway. Most of those were considered rural back in the day in 1994, and now they're urban, so some of those may close. Will they close places like on the northern peninsula and river on ponds where there's been a decrease in population as well as a decrease in volume? I don't know, but nonetheless, what Canada Post and the federal government have come out and saying we can't afford these losses anymore. Cooper says small and medium-sized businesses in those rural communities would suffer if their post office closed. The kind of shipping services that have taken so much of the parcel delivery business in urban areas simply don't operate in many smaller communities. And in Newfoundland and Labrador, this strike could have an immediate impact on the provincial election and many municipal elections where mail-in ballots is the way many people are planning to vote. That's another big question on a long list of big questions around Canada Post today. Zach Gowdy, CBC News, St. John's.

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