Canada Post says it’s issued a 72-hour lockout notice to the Canadian Union of Postal Workers.
The move means there could be a work stoppage at the Post Office by Friday.
In its response, CUPW says the corporation is using the lockout notice to drive 50,000 workers onto the streets in an effort to impose steep concessions on them.
Both sides say the key sticking point in negotiations involves changes to employee pension plans.
The Crown Corporation says CUPW’s demands are “not affordable” and would add a billion dollars in costs over the life of a new contract.
Meanwhile, the Canada Revenue Agency has deemed Old Age Security, CPP and Canada Child Benefit cheques essential, even during a labour disruption.
Canada Post Spokesperson Jon Hamilton says the Post Office has a memorandum of agreement with the union to deliver the cheques for one day a month in the event of a work stoppage.