Canada Post gets relief from pension payments / Saint John Seven strike drags on
Canada Post gets relief from pension payments
OTTAWA — After phasing out door-to-door delivery and hiking stamp prices, Canada Post’s pension obligations have been eased by the federal government.
The Crown corporation — which in 2013 projected an annual $1 billion pension shortfall — will get some relief now that the Department of Finance has announced changes to solvency requirements for the next four years.
Management compensation will also be limited during that period.
"The regulations provide Canada Post with more time to pay off its significant pension deficit so that it can restructure its operations for long-term viability," said Kevin Sorenson, minister of state for finance. "We believe these circumstances merit one-time transitional assistance. As part of Canada Post’s commitment to return to long-term viability, executive compensation will be restricted while the regulations remain in effect."
Canada Post is currently tackling a pension plan deficit of $6.5 billion. Its financial challenges have been chalked up to the historical shift towards digital communications over letter mail, Sorenson noted.
Meanwhile, the Canadian Union of Postal Workers (CUPW) has vowed to fight the cutbacks to mail service (which could result in the elimination of up to 8,000 jobs), calling it a Band-Aid for a bullet wound.
"If this happens, it would be the end of an era for Canada Post," said Denis Lemelin, national president of CUPW. "We recognize that Canada Post needs to change, but this is not the way. We are extremely concerned that these changes will send Canada Post into a downward spiral.
Saint John Seven Radio show strike continues
SAINT JOHN, N.B. — The Saint John Seven sounds like a band you might hear on the radio.
In reality, it’s the name of a group of seven radio station employees who have been on strike for more than 17 months in Saint John, N.B.
Represented by the Canadian Media Guild (CMG), Saint John Seven staff went on strike in June of 2012 after talks with their employer, MBS Radio Saint John, fell apart.
A rally is planned for Dec. 13 in support of the workers, who are facing their second holiday season on the picket line.
"Without the support not only of our own union CMG, and the general support of the union movement in Saint John and in Canada, we would not have been able to sustain such a fight," said Gary Stackhouse, president of CMG at MBS Radio Saint John.
The seven on-air and support staff — working at the Big John FM, K-100 and CFBC stations — joined the union in the spring of 2011 and began talks with MBS to sign their first collective agreement.
After almost a year of negotiations, the two parties could not agree on rates of pay and the Saint John Seven began labour action.
According to the union it has been 12 years since across-the-board wage increases were implemented at MBS.
"Our members at Saint John had been working under appalling conditions and barely making minimum wage, and we salute their resolve and resilience," CMG president Carmel Smyth said in a statement. "We are also encouraged that their story has struck a chord across the country reminding many of their right to decent working conditions and a living wage… As always, we are ready to return to the bargaining table at any time for serious discussions to bring an end to the strike by negotiating a fair collective agreement."
CMG represents 6,000 workers across Canada.
