Canada Post parcel deliveries may stop Friday

As reported by Internet Retailer Magazine:

Amid contract negotiations, the national mail company issues a lockout notice to carriers, noting a 75% drop in e-commerce parcel volume in recent weeks as e-retailers shift packages to other firms.

Canada Post Corp. today served 72-hours’ notice to the union representing more than 50,000 mail carriers that it may lock out workers starting Friday. If that happens, Canada Post deliveries may grind to a halt.

Canada Post—the operator of Canada’s national postal service—and the Canadian Union of Postal Workers (CUPW) have been negotiating their contract since December, and an agreed-to negotiating period expired last week.

Canada Post says the terms it presented to the union June 25 are final and that the “prolonged negotiations and the union’s strike mandate is having a negative and escalating impact on the postal service.” The CUPW describes the terms as an insult.

That negative impact is in part due to the fact that many Canadian e-retailers stopped shipping with Canada Post in recent weeks so their packages wouldn’t get stuck indefinitely if Canada Post deliveries halted. Canada Post, which last year said it delivers about two in every three e-commerce parcels in Canada, says parcel volume from its largest e-commerce customers has dropped by at least 75%. Consumer letter mail and commercial mail also have declined by half, Canada Post says.

Canadian e-retailers Roots Canada Ltd. and Well.ca, which typically ship e-retail parcels with Canada Post, began shipping with parcel delivery service Purolator Holdings Ltd. and UPS Inc., in mid-June, as negotiations between the CUPW and Canada Post faltered and service suspensions looked more likely.

Ken Wood is the founder of LJM Consultants. LJM helps clients negotiate “Best in Class” UPS/FedEx agreements. LJM was recently named the “best parcel auditing company in America” and was also inducted into Inc. Magazine’s Top 500/5000 fastest growing companies in America for 2013. To learn how LJM Consultants can help your company get the parcel contract you deserve, call 631-844-9500 or email kenwood@myLJM.com.