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28 September 2025

Canada Post Strike Shuts Down Mail Nationwide Amid Reforms

A sweeping postal strike halts deliveries across Canada as businesses, workers, and government clash over controversial cost-cutting reforms and the future of public mail service.

Canada’s postal system has ground to a halt as Canada Post workers launched a nationwide strike on Thursday evening, September 25, 2025, in response to sweeping federal reforms that the Canadian Union of Postal Workers (CUPW) denounces as "privatization by stealth." The walkout, which comes after nearly a year of tense negotiations, has left businesses, individuals, and entire communities grappling with uncertainty over their mail and parcel deliveries.

The strike’s immediate impact is being felt by businesses both large and small across the country. In Calgary, Tara Nelson, owner of the AdaptAbility Store, described the situation as "a little unpredictable and it’s a little unnerving." Her business, which caters to the special needs community and ships products both nationally and internationally, relies heavily on Canada Post. "We ship a ton of our orders via Canada Post. A lot of our customers are rural, and sometimes that’s the only option to ship for them, so we have no choice but to either not ship to them or have to ship with a more expensive shipper," Nelson told CityNews. She added that delays in receiving payments by mail have led to further setbacks: "We were delayed in getting payments in, as such, delayed in getting orders out, bringing new products in, being able to pay our invoices if we are delayed in getting our receivables."

Canada Post has confirmed that during the strike, mail and parcels will not be processed or delivered, and some post offices will be closed. Service guarantees have been suspended, and the corporation won’t accept new items until the labour disruption ends. In response, many of Canada’s major banks have urged customers to access statements and make payments online, but for many—especially in rural regions—these digital workarounds are not always practical.

Ruhee Ismail-Teja, vice-president of policy and external affairs at the Calgary Chamber of Commerce, highlighted just how precarious the situation has become for small businesses. "Many of them are struggling with several rising cost concerns, supply-chain disruptions have continued, we’ve seen de minimis tariffs change down in the States," she said, adding that 60% of businesses now cite cost-related worries as a top concern, a figure that jumps to 77% for small businesses. The strike, she said, is "an additional challenge businesses in the city have to deal with, especially in an already uncertain economic period."

Business groups warn the disruption could be massive. According to the Canadian Federation of Independent Business (CFIB), a similar work stoppage during the 2024 holiday period cost small firms over $1 billion. CFIB president Dan Kelly called the timing of this year’s strike "especially troubling," noting that small firms are still strong users of Canada Post. "A new business model can be quickly implemented if government gives the corporation the labour market protection it needs to get the job done," Kelly stated. He also argued that "Canada needs some form of temporary or permanent essential services legislation to ensure service continues while the reforms are going into effect. Small firms are counting on government and all political parties to make this happen."

The strike comes just hours after Public Works and Procurement Minister Joël Lightbound announced a series of government reforms aimed at staunching Canada Post’s financial losses. The changes include ending door-to-door delivery for nearly all Canadian households by converting the remaining four million addresses to community mailboxes, a move expected to save nearly $400 million annually. The government also lifted a decades-old moratorium on closing rural post offices, potentially shuttering up to 4,000 locations and reducing duplication in overserved areas. Non-urgent mail will now be cleared to move by ground instead of air, a shift projected to save more than $20 million per year. According to Lightbound, Canada Post is losing about $10 million each day, despite a $1-billion federal cash injection earlier in 2025 to keep the Crown corporation afloat.

During a press conference in London, Prime Minister Mark Carney didn’t mince words about the scale of the problem. "At the moment, Canada Post is not viable. They lose more than $10 million a day — $10,000,000 a day, day after day. The situation needs to change," Carney said. He explained that the government’s cost-saving suggestions are "the start of a path towards viability." In the second quarter of 2025 alone, Canada Post reported a loss of $407 million. Without reforms, McMaster University Professor Marvin Ryder estimated the corporation could lose at least $1.5 billion in 2025. Ryder told Global News, "Canada Post is bleeding cash at this point… These changes don’t get the books balanced, but could mean five- to six-hundred-million dollars in savings."

The union, however, sees the reforms as an existential threat to public service and worker rights. CUPW national president Jan Simpson called Lightbound’s announcement "a direct assault on our public post office, the public’s right to participate in political processes, and good, unionized jobs across the country." Simpson condemned the lack of public consultation, stating, "With no warning and no chance for public input, the Government has announced sweeping service cutbacks. We can’t let them get away with it. That’s why we are calling on the Government to put an immediate stop to all service cuts to Canada Post. Before implementing any changes to Canada Post’s mandate, the Government must allow the public to have its say."

The union has also criticized the government’s financial narrative, arguing that claims of dire finances are overstated. CUPW suggests that solutions such as increasing stamp rates and reducing management staffing and salaries could address the shortfall, a position Lightbound says he’s also considering. Jennifer Savage, CUPW national director for the Pacific Region, voiced the frustration of union members, saying Canada Post has failed to offer a "viable solution for its workers, one that respects their health and safety…with improvements to benefits, to work methods, their cost of living." She added that members are "angry" and "frustrated." The union is especially concerned about the impact of ending door-to-door delivery, arguing that it will force people in remote regions to travel further for their mail, lower property values, and create safety risks for seniors and those with mobility challenges.

The Canadian Chamber of Commerce has called for both sides to return to the bargaining table and focus on "good faith negotiation focused on how to best support consumers and businesses." As Pascal Chan, the chamber’s vice-president of strategic policy and supply chains, put it, "Canadians are counting on Canada Post to deliver and, following years of repeated supply chain disruptions, another strike is not welcome news."

As the strike enters its first weekend, the future of Canada Post—and the communities and businesses that depend on it—hangs in the balance. With both sides digging in and no resolution in sight, Canadians are left wondering just how long their mailboxes will remain empty and what the next chapter holds for their national postal service.