The Canada Union of Postal Workers (CUPW) has announced that its members will no longer be subject to overtime restrictions in exchange for a commercial flyer distribution halt.

Union President John Simpson called on the post office to resume negotiations in Ottawa on Friday, announcing that the flyer distribution halt would begin at 12:01 a.m. on Monday.

“Canada Post needs to get back to the negotiating table and we’re trying to minimize the impact on the public,” Simpson said at a news conference. He added that the alternative decision to stop the flyers was made because of Canada Post’s concerns about the operational impact and that it hopes to reach an agreement before the busy holiday season.

The union’s goal, Simpson said, is to reach an agreement that can be ratified before Christmas.

Canada Post spokesperson Ariane Sau expressed regret over the union’s decision to stop distributing the leaflets, saying the move would not only affect Canadian businesses that use the postal service, but would also put pressure on Canada Post’s own finances.

“This move will only add to the uncertainty and will have a significant impact on our business,” Sau added. Sau also stressed that the gap between the two sides in the negotiations is still significant, and that the union’s latest proposal maintains or even strengthens many of its positions.

The postal workers’ union began using the overtime ban as a leverage tool in late May of this year, which has now dragged on for more than a year and a half.

Union members rejected Canada Post’s latest offer about a month ago and then submitted a proposal that calls for a wage increase while also including benefits for part-time workers.

Canada Post has yet to respond to the proposals, but has called for the union’s expectations to be aligned with its own dire financial situation. The government agency has said it is losing millions of dollars a day due to the uncertainty in the negotiations.

Canada Post reported a pre-tax loss of $407 million in the second quarter of this year, compared with a profit in the same period last year, a change officials say was due to the uncertainty in labour relations.

“This is not good news for businesses, as about 20 per cent of our members use Canada Post for low-cost advertising,” said Dan Kelly, president of the Canadian Federation of Independent Business. “This brings us even closer to a strike or a full shutdown, and as the holiday season approaches, concerns are growing.”

It is worth noting that the strike and lockout continued for more than a month in November and December of last year, and only ended after the then-Minister of Labour announced a no-deal and the Canada Industrial Relations Board ordered the work stoppage to end.

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