Nov. 26 (Bloomberg) -- Canada Post employees representing 4 percent of the state-owned letter carrier's workforce threatened to strike by Dec. 8 without improved health benefits and job security.

The 2,600 members of the Union of Postal Communications Employees voted 73 percent to strike, Luc Guevremont, the union's president, said today in Ottawa. His union, the smallest of four at Canada Post, represents mostly clerical workers such as customer service agents.

Canada Post, which has a monopoly on letter mail and competes with companies such as United Parcel Service Inc. for courier packages, said a strike wouldn't disrupt service. Ottawa- based Canada Post has 70,000 employees.

``These people don't handle the mail,'' spokesman John Caines said. ``We're not concerned that there would be any disruption if we couldn't get a contract.''

The postal communications employees have been without a contract since the end of October, and have been negotiating with their employer since July, Guevremont said.

Canada Post wants the union to sign a collective agreement lasting 3 1/2 years, and which would remove the union's ability to threaten a strike during the Christmas period, Guevremont said. That shows the company is worried about operating without his members, he said.

Union negotiators are fighting Canada Post's plan to increase medical and dental fees attached to the company's benefits plan without expanding coverage, Guevremont said. The union also wants Canada Post to cease using non-union employees to do the work of its members.

The two sides are scheduled to resume negotiations on Monday.

To contact the reporter on this story: Kevin Carmichael in Ottawa at kcarmichael@bloomberg.net.

Last Updated: November 26, 2004 15:12 EST