Canada Post’s largest union has launched a second national strike in less than two years, raising concerns that disruptions could stretch into the critical holiday shopping season. The Canadian Union of Postal Workers (CUPW) announced the walkout following the federal government’s decision to grant Canada Post new powers to restructure, including eliminating door-to-door mail delivery and replacing rural post offices with kiosks.
The strike comes as Canada Post continues to face steep financial challenges, with accumulated losses of more than $5 billion since 2018. The corporation posted a $1.3 billion loss last year and required a $1 billion federal cash injection in January to maintain operations. According to federal procurement minister Joël Lightbound, the postal service is currently losing about $10 million every day. Canada Post has promised to deliver new global offers to CUPW this week, but the gulf between the two sides remains wide.
Labour experts warn that the dispute may be difficult to resolve quickly. “Canada Post management just doesn’t have a lot of wiggle room, and the union is not prepared to give them one ounce of wiggle room,” said Marvin Ryder, associate professor of marketing at McMaster University’s DeGroote School of Business. He added that while a government-ordered end to the strike is possible, recent disputes such as the Air Canada flight attendants’ strike demonstrate that such measures may not bring swift resolution. “My fear is that because both sides are so dug in, this could go on for quite a while,” Ryder said.
The Retail Council of Canada has warned the strike will have significant impacts on small businesses and retail workers, with deliveries of packages, flyers and essential goods already disrupted. Ryder stressed the timing could not be worse: “Once you get to November and you’re into the Christmas season, 50 per cent of retail sales happen in the months of November and December. If it goes much beyond the next two or three weeks, then we’re back in the situation we had a year ago.” A 32-day strike in November and December of 2024 led to major delivery delays during the last holiday season.
Canada Post has previously offered postal workers compounded wage increases of 13.59 per cent over four years, far short of the 19 per cent increase CUPW is demanding. In addition to higher wages, CUPW has pushed to limit Canada Post’s use of contracted services, a demand the corporation says it cannot meet given its financial pressures. Canada Post says CUPW’s counter-proposals would add more than $700 million in annual costs.
Lightbound’s restructuring plan also calls for slower mail service guarantees between cities, the implementation of more community mailboxes, and the closure of some rural post offices. Ryder estimates as many as 10,000 jobs could eventually be cut as part of the cost-cutting plan. CUPW President Jan Simpson has condemned the changes, calling them an attack on the public postal service. “Canada Post is owned by the people, and as owners, Canadians should have a say in any major changes or decisions to the Corporation,” she said. “Without public consultations, communities may lose their cherished postal services without having any say in the matter.”
Despite the mounting tensions, Canada Post insists it remains committed to reaching an agreement. “We remain committed to reaching negotiated agreements with CUPW that are affordable, support our people and help build a sustainable future for the company,” the corporation said in a statement. “We are working diligently and will present these new offers as soon as possible.”
With the strike entering a critical period, uncertainty looms for Canadian households and businesses preparing for the busiest shopping and shipping months of the year.