Canada Post denies Ottawa's reforms give it leverage over striking union in negotiations

Canada Post is denying the Liberal government's directive to change the postal service's operational model gives it leverage over the striking union in negotiations, as the two sides continue their days-long showdown.

"I wouldn't argue that it's given us any leverage," said Jon Hamilton, a spokesperson for Canada Post during an interview on Rosemary Barton Live that aired Sunday. "[The union] walked out in response to them."

"We've been told it's now time to get back away from the taxpayer subsidies and make the changes," Hamilton told host Rosemary Barton.

On Thursday, the Canadian Union of Postal Workers (CUPW) suddenly called for a nationwide strike, after the federal government instructed Canada Post to end home delivery and close some rural mail outlets.

Those instructions are part of a modernization plan that Ottawa says will allow Canada Post to stabilize its finances and ensure its survival. The Crown corporation is on track to lose $1.5 billion in 2025.

WATCH | Explaining what's going on with Canada Post and if it can be saved:

Can ending door-to-door mail delivery help solve Canada Post's financial catastrophe? That's part of the federal government's proposed solution to curb daily losses in the millions of dollars, but the union has swiftly responded with a nationwide postal worker strike. Andrew Chang explains how Canada Post's greatest strength may now be its greatest weakness — and how a viable path forward could unfold. Images provided by Getty Images, The Canadian Press and Reuters.

Shortly after Ottawa announced the reforms, Canada Post said it was "reassessing" an offer it had planned to make to CUPW and would present a "revised" version to workers when ready.

Canada Post was given 45 days to submit a cost-savings plan to the federal government. Hamilton said "we're now working on that" and the plans will be shared with Public Works Minister Joël Lightbound, who's responsible for this file.

"Then I'm assuming we'll be making those public and explaining what that change is going to look like," Hamilton added.

Lightbound estimated on Thursday that the switch from door-to-door delivery to community mailboxes will likely take close to a decade, though many people will see changes much sooner.

In an interview on Rosemary Barton Live that aired Sunday, CUPW negotiator Jim Gallant said he thinks Canada Post's management is "awful" and the federal government's recommended reforms are actually ideas from the Crown corporation.

"Canada Post came with these suggestions," Gallant said. "We've been negotiating on and off for the best of two years, and those are the things that Canada Post wanted."

Asked whether he was suggesting Ottawa was taking orders from Canada Post and not making an independent decision, Gallant said, "I am saying that," and "Canadians should decide what Canada Post is and how it goes through the future."

Gallant also pushed back on statements from Canada Post and Lightbound that the mail carrier was effectively insolvent.

"There's no such thing," Gallant said. "Are the RCMP insolvent? Are the Armed Forces insolvent? It's not the truth. Government can't be insolvent."

Canada Post isn't taxpayer-funded; under the Canada Post Corporation Act, the mail carrier is expected to be financially self-sustaining while meeting the needs of Canadians. Earlier this year, the government lent it $1 billion due to its recent financial constraints.

"The money has to be where the mouth is, and the government should support Canada Post," Gallant said. "We should end up with a postal service that serves Canadians."

Nancy Peckford, mayor of North Grenville, Ont., told Barton her community of about 20,000 people has a "heavy reliance" on Canada Post, and that "we support the strike, but it's going to be tough for our community, there's no doubt."

If North Grenville's post office is shut down as part of the reforms, Peckford said it would be a "devastating development" because the post office is also a hub where people can connect.

WATCH | The government says it wants to save Canada Post:

Joël Lightbound, minister of public works, was asked Thursday what makes the government think people will accept major changes to how Canada Post operates, particularly around door-to-door delivery.

"While we know we're growing, and in fact Canada Post has expanded its service in the municipality by virtue of our growth, it would be very sad and quite disruptive to see the disappearance of our local post office," Peckford added.

"I think it's incumbent upon Canada Post now, given where they're at, to really engage strategically [with] municipalities so that we can share our perspectives and they can hear directly from the clients that they serve."