Canada Post employees picket outside a distribution centre in Montreal, Wednesday, Nov. 27, 2024. THE CANADIAN PRESS/Christinne Muschi

OTTAWA - The federal government says it is not planning to intervene to resolve the labour dispute at Canada Post, even with less than a month to go before Christmas.

Speaking to reporters on Wednesday, Labour Minister Steven MacKinnon said sending the matter to binding arbitration "is not in the cards," even though he invoked that authority only a few weeks ago to resolve the ports dispute and a few months ago to resolve the rail dispute.

"Every dispute is different, but here the issues are fundamental. The issues are around a transformed business model for the corporation," MacKinnon said in French.

"It's not a secret to anyone that Canada Post is built to deliver letters. But Canadians don't send many letters anymore. It has to be transformed into a business that, yes, delivers letters in a sustainable way, but also a business that delivers parcels in a profitable way."

MacKinnon also said sending the matter to arbitration is more complicated than it was in previous labour disputes given those fundamental issues.

"It is difficult to envisage a situation where you could find an arbitrator who could adequately cover the issues that are at hand. These are differences of vision currently at the table that are hard to bridge using conventional arbitration," MacKinnon said.

"While I would never rule out any option in the future, what I would say right now and for the foreseeable future is if this agreement does not come together at the table, there will be no end to this labour conflict."

In a statement posted to X on Wednesday morning, MacKinnon said the special mediator appointed to help end the labour dispute reported the two sides are too far apart on critical issues for mediation to be of any use.

As such, mediation has been temporarily suspended, and MacKinnon summoned both sides to his office in Ottawa. He said the message is the two sides are responsible for the consequences of the dispute, which has stalled mail and parcel delivery since Nov. 15.

MacKinnon said negotiations "have not budged" even with eight days under the special mediator.

Around 55,000 workers are on the picket line calling for a "fair wage" and better working conditions, which Canada Post insists will add heavy costs and create inflexibility in the postal service.

"Obviously, there are small businesses and others who are being affected by this labour conflict," MacKinnon told reporters, adding he isn't happy with the situation.

Asked how he can reconcile with small business owners, given how the government has handled other labour disputes in recent months, MacKinnon said the government is "acting with every possible tool in the tool kit to bring an end to this dispute."

"But this dispute belongs to the parties, and the parties need to find a solution."

Last week, Canada Post reported a loss of $315 million before tax in the third quarter of 2024. It attributed the loss to a 9.6 per cent drop in parcels compared to the same period in 2023, representing six million pieces.

This report by The Canadian Press was first published Nov. 27, 2024.

Note to readers: This is a corrected story. A previous version stated Canada Post had 0.6 per cent fewer parcels in 2024 than in 2023.

News from © The Canadian Press, 2024