Labour Minister Steven MacKinnon directed the Canada Industrial Relations Board to order the 55,000 picketing employees back to work within days if the tribunal determines a deal isn't doable before the end of the year.
Canada Post said Sunday night that after two days of hearings over the weekend, an impasse was declared by the board. It says union members have been ordered back to work under their existing contracts, which have been extended until May to allow the bargaining process to resume. In the meantime, Canada Post says it has agreed with the union to implement a five per cent wage increase, retroactive to the day after the collective agreements expired.
Business groups had been calling on the government to intervene as companies and individuals scrambled to find alternative modes of delivery with the holiday shopping season in full swing.