Canadian Labour Reporter

JANUARY 6, 2014 2 Canadian HR Reporter, a Thomson Reuters business 2013 Canada Post gets relief from pension payments OTTAWA — After phasing out door- to-door delivery and hiking stamp prices, Canada Post's pension obliga- tions have been eased by the federal government. The Crown corporation — which in 2013 projected an annual $1 billion pension shortfall — will get some relief now that the Department of Finance has announced changes to solvency re- quirements for the next four years. Management compensation will also be limited during that period. "The regulations provide Canada Post with more time to pay off its sig- nificant pension deficit so that it can re- structure its operations for long-term vi- ability," said Kevin Sorenson, minister of state for finance. "We believe these circumstances merit one-time transi- tional assistance. As part of Canada Post's commitment to return to long- term viability, executive compensation will be restricted while the regulations remain in effect." Canada Post is currently tackling a pension plan deficit of $6.5 billion. Its financial challenges have been chalked up to the historical shift towards digital communications over letter mail, Soren- son noted. Meanwhile, the Canadian Union of Postal Workers (CUPW) has vowed to fight the cutbacks to mail service (which could result in the elimination of up to 8,000 jobs), calling it a Band-Aid for a bullet wound. "If this happens, it would be the end of an era for Canada Post," said Denis Lemelin, national president of CUPW. "We recognize that Canada Post needs to change, but this is not the way. We are extremely concerned that these changes will send Canada Post into a downward spiral. Saint John Seven radio show strike continues SAINT JOHN, N.B. — The Saint John Sev- en sounds like a band you might hear on the radio. In reality, it's the name of a group of seven radio station employees who have been on strike for more than 17 months in Saint John, N.B. Represented by the Canadian Media Guild (CMG), Saint John Seven staff went on strike in June of 2012 after talks with their employer, MBS Radio Saint John, fell apart. A rally is planned for Dec. 13 in support of the workers, who are fac- ing their second holiday season on the picket line. "Without the support not only of our own union CMG, and the general sup- port of the union movement in Saint John and in Canada, we would not have been able to sustain such a fight," said Gary Stackhouse, president of CMG at MBS Radio Saint John. The seven on-air and support staff — working at the Big John FM, K-100 and CFBC stations — joined the union in the spring of 2011 and began talks with MBS to sign their first collective agreement. After almost a year of negotiations, the two parties could not agree on rates of pay and the Saint John Seven began labour action. According to the union it has been 12 years since across-the-board wage in- creases were implemented at MBS. "Our members at Saint John had been working under appalling condi- tions and barely making minimum wage, and we salute their resolve and resilience," CMG president Carmel Smyth said in a statement. "We are also encouraged that their story has struck a chord across the country reminding many of their right to decent work- ing conditions and a living wage… As always, we are ready to return to the bargaining table at any time for serious discussions to bring an end to the strike by negotiating a fair collective agree- ment." CMG represents 6,000 workers across Canada. FORMERLY CLV REPORTS Serving labour relations professionals since 1956 www.labour-reporter.com Published weekly by Thomson Reuters Canada Ltd. Subscription rate: $595 per year Customer Service Tel: (416) 609-3800 (Toronto) (800) 387-5164 (outside Toronto) Fax: (416) 298-5106 carswell.customerrelations@thomson reuters.com Website: www.carswell.com Director, Carswell Media: Karen Lorimer Publisher: John Hobel Managing Editor: Todd Humber News Editor: Sabrina Nanji sabrina.nanji@thomsonreuters.com (416) 649-9348 News Editor: Liz Foster liz.foster@thomsonreuters.com (416) 298-5129 Marketing Co-ordinator: Travis Chan travis.chan@thomsonreuters.com (416) 609-5872 © 2013 Carswell, a division of Thomson Reuters Canada Ltd. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise without the written permission of the publisher. The publisher is not engaged in rendering legal, accounting or other professional advice. If legal or other expert assistanceis required, the services of a competent professional should be sought. The analysis contained herein represents the opinion of the authors and should in no way be construed as being either official or unofficial policy of any governmental body. ISSN 0045-5113 Publications Registration 2089 Canadian Labour Reporter is part of the Canadian HR Reporter group of publications. Visit www.hrreporter.com for more information. canadian labour reporter Labour Briefs A look at labour news from across Canada. For regular news updates, visit Canadian Labour Reporter at www.labour-reporter.com

• Cover