The Canadian Union of Postal Workers’ strike mandate is expiring in a weeks time on August 25, 2016 and contract negotiations are coming to an end. The question is whether it will follow with the same conclusion as the Canadian Postmasters and Assistants Association; an arbitrator has accepted Canada Post’s proposal to include a defined contribution pension plan for new employees as well as changes to entry-level wages.

The CUPW is determined to keep the defined benefit pension plans for newer workers. A defined benefit pension plan is where employees earn a specific amount of pension regardless of how the pension fund’s investments performed; whereas a defined contribution pension plan pays out according to how the investments fair. The CUPW rejected the pension proposal and Jon Hamilton, the spokesperson for Canada Post, said it has put “more than a billion dollars in demands on the table and that would certainly impact our ability to provide affordable service to Canadians.”

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