Jobs Minister Patty Hajdu urges Canada Post and its 55,000-worker union to consider binding arbitration, warning that an imposed settlement may follow if negotiations fail.

"Canadians expect the parties to resolve this dispute one way or another. To do that they must meet and pursue these two paths with urgency," Hajdu said on social media yesterday. Federal mediators are ready to assist, if needed, she said.

Canada Post requested the government mandate a union vote on its "final offers" on May 30, rejecting the union's counter-proposal for binding arbitration.

The latest offer reflected a May 16 report indicating the post office was "effectively insolvent or bankrupt." Canadian Union of Postal Workers (CUPW) countered that no meaningful negotiation had taken place.

On Tuesday, the union criticized a potential forced contract vote as a "government attack on free bargaining rights," noting past federal interventions in 2024 and 2018.

Cabinet used section 107 of the Canada Labour Code to end the Canada Post pre-Christmas strike, citing the need to "maintain or secure industrial peace" and "promote conditions favourable for the settlement of industrial disputes."

A November 15th strike disrupting shipping caused many e-commerce companies to switch from Canada Post to other couriers to prevent future disruptions.

"Canadians are rightly fed up," then-Labour Minister Steven MacKinnon told reporters last December 13. "As Minister of Labour, I have a responsibility to protect Canadians by acting in the public interest to maintain industrial peace."

The 32-day work stoppage before Christmas delayed millions of letters and packages, with ongoing uncertainties resulting in a 65% drop in parcel volumes compared to last year.

Labour Minister Hajdu used Bill C-89, An Act To Provide For The Resumption And Continuation Of Postal Services, to halt a 2018 CUPW strike with $100,000 daily fines, ending 48-hour rotating strikes, according to Blacklock’s.

If Canada Post workers strike, labour experts anticipate swift back-to-work legislation from the federal government, despite Public Works urging non-intervention.

Canada Post warns that a year-plus arbitration would be lengthy, complex, and worsen its financial woes. CEO Doug Ettinger warned Parliament of the corporation's precarious state, citing an $841 million pre-tax loss last year that ballooned to $1.3 billion with expenses.

The postal service has been unprofitable since 2017, with accumulated losses totalling $3.8 billion. Letter volumes have dropped from around 5.5 billion in 2006 to approximately 2.2 billion in 2023, with further reductions after the fact.

Canada Post received a Wednesday deadline to respond to offers, which include ending mandatory overtime and a signing bonus of up to $1,000, according to the Epoch Times.

The postal service offered a 14% wage increase over four years, a daily route change pilot based on parcel volume, and weekend shifts for part-time employees, a key issue in negotiations.