Operations at Canada Post will resume at 8 a.m. local time on Tuesday, Dec. 17, the company said, after the Canada Industrial Relations Board ordered a return to work.
Labour Minister Steven MacKinnon on Friday directed the Canada Industrial Relations Board to order the 55,000 picketing employees back to work if a deal wasn't doable before the end of the year.
After two days of hearings over the weekend, Canada Post said the board determined negotiations between the Crown corporation and the Canadian Union of Postal Workers are at an impasse.
As directed by the minister, the labour board has extended the union contracts through May to allow additional time for the bargaining process to unfold.
In the meantime, Canada Post says it has agreed with the union to implement a five per cent wage increase, retroactive to the day after the collective agreements expired.
The union did not immediately respond to a request for comment about the resumption of work.
It said on Friday that MacKinnon's intervention was part of a troubling pattern in which the government lets employers off the hook from bargaining in good faith with workers and their unions.
Business groups had increasingly been calling on the government to intervene as companies and individuals scrambled to find alternative modes of delivery with the holiday shopping season in full swing.
Ottawa used section 107 of the Labour Code to issue its directive Friday, after using the same powers to intervene earlier this year in disputes at the country's railways and ports, directing the board to order workers back to work and impose binding arbitration.
MacKinnon called the move a creative solution by not sending the matter directly to binding arbitration — as the government did in the earlier standoffs.
"We're calling a timeout," MacKinnon told reporters in Ottawa on Friday.
"Suffice to say positions appeared to have hardened and it became clear to me we were in a total impasse."
This report by Ïã¸ÛÁùºÏ²Ê¹ÒÅÆ×ÊÁÏ was first published Dec. 15, 2024.
Note to readers:This is a corrected story. A previous version used unclear wording that suggested the union said employers were let off the hook for good-faith bargaining.
