Canada Post employees may soon find themselves back on the picket lines as the clock ticks down to the expiration of their collective agreements on May 22, 2025. If a strike or lockout occurs, it would represent the second disruption of postal services in less than six months. This follows a previous strike in late 2024 when 55,000 employees walked off the job for 32 days, leading to significant service interruptions.
According to Ulrich Paschen, a business professor at Kwantlen Polytechnic University in Surrey, British Columbia, the union's negotiating power may have diminished since the holiday peak period has passed. "The union's negotiating position is not stronger but weaker, as the urgency of the holiday period is not there," he stated.
In December 2024, after the previous strike, Canada Post faced a backlog of 3.8 million parcels and packages. The financial situation of Canada Post is precarious, with the company reporting an operating loss of $845 million in 2023. Paschen warns that if the company increases wages while its revenues continue to decline, it risks financial collapse.
The two parties have agreed to resume negotiations with the support of a mediator after talks broke down in March 2025. This new round of discussions comes at a challenging time for the shipping industry, which is already grappling with changing American tariffs and economic anxieties that have disrupted global supply chains.
Last year's strike left millions of parcels and letters pending as the holiday season approached, forcing businesses and consumers to scramble to ship their products. A ministerial directive ultimately compelled employees to return to work in mid-December 2024.
Canada Post acknowledged the strain this uncertainty places on businesses. In a recent update, they stated, "We know this uncertainty is difficult for your business. We had hoped that new agreements would already be concluded at this stage. Ending this uncertainty is our priority." The union has prioritized issues such as salaries, health and safety benefits, job security, and pension plans in the negotiations.
The report from an industrial commission examining the state of Canada Post is expected on May 15, 2025. This inquiry, convened by the Minister of Labor and led by veteran arbitrator William Kaplan, aims to assess the Crown corporation's financial situation, delivery model, workplace practices, and overall viability in light of the ongoing negotiation impasse.
Key issues that remain unresolved include the extent of wage increases and Canada Post's willingness to expand weekend delivery. Both sides are at odds over how to staff the necessary personnel for this potential expansion. Canada Post has framed this expansion as a way to increase revenues and compete with other carriers, arguing that a mix of part-time and full-time shifts would create flexibility while keeping costs down. However, the union sees this as an attack on full-time jobs.
Under the previous Prime Minister Justin Trudeau, the federal government was more willing to intervene in recent labor disputes. Between August and December 2024, the Minister of Labor issued directives that ended three major strikes or lockouts, including those at Canada Post and in the two main freight railways of Canada.
The potential for another strike looms large as both parties prepare for what could be a contentious negotiation period. With the expiration of collective agreements on the horizon, the stakes are high for both Canada Post and its employees. The outcome of these negotiations could significantly impact postal services across the country.
As the situation develops, businesses and consumers alike are left wondering how a potential strike could affect their mail and package deliveries. The urgency to resolve these issues is palpable, with both sides aware that the clock is ticking.
In summary, the upcoming negotiations will be crucial in determining the future of postal services in Canada. With both sides facing pressing challenges, the hope remains that a resolution can be reached before the situation escalates into another strike.
