The union representing Canadian postal workers is moving to end a ban on overtime work and will instead have members stop delivering commercial flyers as it seeks to get Canada Post back to the bargaining table.

The halt to flyer deliveries is set to come into effect Monday, said Canadian Union of Postal Workers president Jan Simpson, who warned of possible escalation ahead.

“Canada Post needs to get back to the table,” she said at a press conference in Ottawa on Friday.

“If Canada Post continues to stall, postal workers will have no choice but to consider stronger actions to move negotiations ahead.”

The warning comes as CUPW says Canada Post is refusing to talk until the union significantly changes its latest offer.

The union in early August voted down what Canada Post said was its final offer, and CUPW responded with its own proposal that the postal service said was a step backwards.

Simpson said the move away from an overtime ban came as the postal service has raised concerns about its impact on operations. She said she hopes the change will help restart talks and secure a deal before the lucrative holiday rush while minimizing the impact on Canadians.

“Our goal is to get collective agreements that are ratifiable before Christmastime,” she said.

Canada Post said the latest move to halt flyer delivery was a disappointment that will affect thousands of Canadian businesses that use the service.

“This latest strike activity will only increase the uncertainty that is having a major impact on the business,” said spokesman Phil Legault in a statement.

Canada Post says the gap between the two sides remains “substantial” after the union’s latest proposal maintained or hardened its positions on many issues.

“We encourage CUPW to come back with workable solutions that reflect our current reality and get the parties closer to a resolution,” said Legault.

Business groups also expressed disappointment in the latest union move.

Canadian Federation of Independent Business president Dan Kelly said there was nothing good in the latest union action as about 20 per cent of members use Canada Post for flyers as a low-cost advertising option.

“This is bad news, but even more than the loss of flyers, this inches us closer to an overall strike or lockout, and we are very close to the critical holiday season once again.”

A strike and lockout lasted more than a month in November and December last fall, ending only after then-labour minister Steven MacKinnon declared an impasse in the talks and asked the Canada Industrial Relations Board to order an end to the work stoppage.

While many might not be bothered by the loss of flyers, the Retail Council of Canada said it was very concerned by the move, especially as seniors and those in rural or underserved communities still use them to learn about potential savings.

“Canadians should not be caught in the middle of this dispute,” said Kim Furlong, head of the Retail Council, in a statement.

The impasse between the union and postal service comes as workers demand higher wages and other work improvements, while the Crown corporation has posted cumulative losses of more than $5 billion since 2018.

Kelly at the CFIB said that at some point the government will need to push through major reforms to make what is still a vital service for many Canadians and businesses a sustainable operation.

“They need to rip the Band-Aid off and get the major reforms made, and order the workers back on the job until such time as that is over.”

Simpson at CUPW said she was worried the government would indeed step in again as it did before in the Canada Post dispute and in many other times including for Air Canada, port and rail strikes.

“I’ve never seen more people on picket lines in my life, and this is because this government is enabling these employers to know they don’t have to come to the table and bargain collective agreements.”