By Paul Vieira


OTTAWA--Canada's labor minister on Friday proposed a solution to end a month-long strike at the government-owned postal service, arguing negotiations between Canada Post and the main union are headed in the "wrong direction" despite work by mediators and conciliators.

Steven MacKinnon said he has asked the federal labor-relations board to rule on whether it agrees that the postal service and the Canadian Union of Postal Workers are at an impasse. Should the board agree, MacKinnon said, he hopes mail delivery could start as early as next week. At that point, he would extend the current labor agreement to May 22 while an appointed arbitrator works to bring the two sides closer to a deal.

"We are calling a time out," MacKinnon told reporters at a press conference in Ottawa. "The positions have hardened. We are at a total impasse."

The strike began on Nov. 15, or four weeks ago, and the Canadian Federation of Independent Business said the labor dispute has cost its members--small and mid-size firms--an estimated 1.6 billion Canadian dollars, or the equivalent of $1.2 billion, in sales, at the height of the holiday-shopping season.

In a statement, the union, which represents 55,000 employees at Canada Post, said it "denounces in the strongest terms this assault on our constitutionally protected right to collectively bargain and to strike."


Write to Paul Vieira at paul.vieira@wsj.com


(END) Dow Jones Newswires

12-13-24 1102ET