CANADA POST

CANADA POST

February 02, 2006 16:58 ET

Canada Post: Arbitration decision will not impact the Closure of the Quebec Mail Processing Plant

QUEBEC CITY, QUEBEC--(CCNMatthews - Feb. 2, 2006) - A ruling by arbitrator Guy Dulude will not impact Canada Post's decision to close the Quebec City Mail Processing Plant. The arbitration was in response to a grievance filed by the Canadian Union of Postal Workers (CUPW).

While the issues raised in the ruling require Canada Post to make some minor adjustments in terms of timing of the multi-phase project, it will not delay the final completion date. Canada Post has agreed to provide an updated notice of change to the union, and will respect the 120-day notice as per the collective agreement.

Canada Post is acting responsibly by adjusting its processing network to actual needs of the market while not causing any regular employee to lose their job. The company will maintain a large presence in Quebec as it continues to provide over 1100 jobs in its many facilities, with economic benefits in the order of $90 million.

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