Canada Post has rejected a proposal by the Canadian Union of Postal Workers (CUPW), which represents about 55,000 workers, to submit a protracted labour dispute to independent arbitration.

The union said Saturday it was ready for “fair, final and binding arbitration” to end months of negotiations that have failed to produce a new collective agreement. But the Crown corporation rejected the proposal on Sunday, saying arbitration would only make matters worse and drag on for a year or more at a time when the company is already facing serious financial difficulties.

Canada Post presented a “final offer” on Wednesday that includes eliminating mandatory overtime and a signing bonus of up to $1,000. But the company is insisting on a 14 per cent wage increase over four years and part-time weekend work, key points of contention in the negotiations.

The company has asked Labour Minister Patty Hajdu to organize a vote among union members on the latest proposal.

The CUPW said that a forced vote would not solve the problem, but would only deepen the divisions and prolong the uncertainty. Since May 23, the union has been in an official position to start a strike, but has so far limited itself to a ban on overtime work.