Ottawa, Sept. 2, 2005-As gas prices hit record heights, Canada Post is refusing to share its fuel surcharge revenues with its cash-strapped rural and suburban mail carriers.

The Canadian Union of Postal Workers (CUPW) has been trying to get relief for the thousands of rural and suburban mail carriers who pay their own gas costs as the price at the pumps soared as high as $1.34 a litre this week. "They are pushing our members to the breaking point" declared Deborah Bourque, CUPW National President. The 6000 rural and suburban mail carriers represented by the CUPW must, under the terms of their first contract, pay all of their own fuel costs and are reimbursed vehicle expenses based on rates over 2 years old.

Canada Post imposes a fuel surcharge on parcels and premium products. This surcharge, which has been in place for over a year, is currently 5.25% but will increase to 6.75% on Sept. 5. Some surcharge revenue goes to Canada Post's own vehicles and selected contractors. Yet, incredibly, none of the money goes to rural and suburban mail carriers.

With the latest round of fuel price hikes, rural and suburban mail carriers can no longer afford to deliver mail. "Clearly the current situation goes well beyond what was contemplated in our collective agreement. We need immediate relief for our members," said Bourque.

Gasoline prices already skyrocketed 12.3% between July 2004 and July 2005. Prices have jumped up again as much as 20 cents a litre, since Hurricane Katrina's devastation.

Canada Post has refused to put any of the fuel surcharge toward the gas costs of rural and suburban letter carriers. The Union has demanded to know what the corporation is doing with the money and how much it is making off the surcharge imposed on Canadians. "Canadians will want to know why they are paying more at the postal counter when the money is not going to pay fuel costs of everyone delivering the parcels" said Bourque.

She warned that a confrontation is inevitable, "Our members cannot continue to subsidize the public's basic mail service out of their own pockets. Canada Post is putting a vital community service at risk for all Canadians."

-30-