Canada Post is currently facing significant challenges, having recently reported losses exceeding $300 million, primarily due to a combination of unfavorable market conditions and labor disruptions. The postal service, which has already been struggling with the decline of traditional mail and growing competition from private delivery companies, saw its situation exacerbated when more than 55,000 of its workers went on strike on November 15.
This strike, which has now entered its second week, is the result of prolonged contract negotiations between Canada Post and the Canadian Union of Postal Workers (CUPW). Key issues on the table include demands for fair wage increases, job security, and improved work conditions. The union argues the current wage proposals do not match the rising cost of living and inflation, which has significantly impacted workers’ buying power.
During the strike, Canada Post has warned customers to expect service interruptions, with mail and parcel deliveries severely impacted. "Canada Post’s operations will shut down during a national strike, affecting millions of Canadians and businesses across the country," indicated official communications from the service. Some post offices have been closed entirely during this period, leading to mounting frustrations for both senders and recipients reliant on postal services for their everyday needs.
The strike has indirectly benefited rival shipping companies, including major players like FedEx and Purolator, which have seen increased volumes as businesses and individuals look for alternatives to Canada Post. According to Kevin Ham, CEO of e-commerce shipping platform Chit Chats, “We have record numbers of shippers within the last week. Our volumes — we’re just trying to keep up,” demonstrating how companies are capitalizing on Canada Post's absence.
Compounding these difficulties, Canada Post announced it lost $315 million before tax during the most recent quarter, marking another downturn amid declining package volumes—down nearly 10% year-over-year. Overall, the corporation is on track for its seventh consecutive year of losses, raising questions about its operational viability and sustainability.
Striking workers are adamant about their rights; they demand wages reflective of both inflation and the growing cost of living. CUPW President Tim Ashworth expressed considerable concern over what he termed as “a two-tier system” being proposed by Canada Post, which would offer less favorable benefits to new hires compared to existing employees. This matter touches not only on immediate wages but also on long-term benefits such as pensions.
Workers have rallied at various locations, including Kingston, where local union members gathered to voice their support for fair wages. These actions are part of larger movements within the postal network aimed at achieving lasting improvements for employees working at Canada Post.
While some operations, like delivering government benefit cheques—such as disability payments and pensions—were resumed under mediated agreements during the strike, the disruption continues to impact countless Canadians who depend on the postal service for personal and business communications. The federal government is monitoring the situation closely, recognizing the broader economic concerns raised by dwindling postal services.
Meanwhile, small businesses, which typically rely on Canada Post for shipping their products, have reported significant frustrations. Store owners are scrambling to find alternative shipping methods to fulfill customers' orders. Ham noted, “It’s hard for both sellers and consumers. If shipments are stuck within the Canada Post network, that's not beneficial for anyone.”
There has also been substantial public discourse around the long-term health of Canada Post itself. Since 2018, the corporation has reported over $3 billion in losses. Declining letter volumes—a trend dubbed by Canada Post as “the Great Mail Decline”—has shifted consumer behavior dramatically. Households received, on average, seven letters per week back in 2006; last year, this statistic dropped to just two letters per week.
The growing competition from carriers like Amazon and others has intensified this decline, and their ability to provide speedy deliveries has led to decreased demand for Canada Post’s services. The union and the corporation, recognizing this challenge, have both emphasized the need to transition toward more parcel deliveries to increase revenue. Yet their strategies diverge significantly: the union advocates for more full-time workers to handle deliveries and maintain job security, whereas Canada Post prefers to hire contract workers to cut costs.
Public sentiment around the strike continues to be mixed, with many Canadians expressing both support for the workers' demands and concern over the logistical challenges they face. Looking forward, it appears both Canada Post and the union face significant hurdles to achieving sustainable and mutually beneficial solutions. Struggles over wages and working conditions are indicative of broader trends affecting many sectors where labor disputes arise over economic disparities and workplace rights.
Negotiations have resumed, albeit still without significant progress according to reports. The situation remains fluid, but what’s clear is the impact this strike is having not just on the postal workers, but on the entire network of individuals and businesses reliant on Canada Post to serve their communication and shipping needs.
