Canada Post employees will be returning to work after enduring over a month of strike action, following intervention from the federal government. This decisive move came after Labour Minister Steven MacKinnon recognized what he described as an impasse between Canada Post and its workers. With employees ordered to report back to work starting Tuesday, the expectation is for mail services to resume operations under existing contracts until May 2025.
The announcement shed light on long-standing disputes related to pay and working conditions within the Crown corporation, driven by frustrations voiced by the Canadian Union of Postal Workers (CUPW). During the strike, which began on November 15, 2024, federal intervention became increasingly inevitable as small businesses across Canada wrestled with the fallout from halted delivery services.
Souris-Moose Mountain MP Dr. Robert Kitchen remarked on the positive outcome for his constituents: "I know that'll be a huge weight off of many of my constituents,” he said. Kitchen pointed out the detrimental effects on small businesses relying on Canada Post, as well as disruptions faced by individuals awaiting important deliveries like passports.
This sentiment was echoed throughout the country as concerns over the strike lingered. Prime Minister Justin Trudeau voiced apprehensions on December 9, warning about the potential long-term jeopardy the strike posed to Canada Post’s viability as a valuable national service.
By December 14, Labour Minister MacKinnon formally addressed the Canada Industrial Relations Board, seeking to resolve the situation before the Christmas season intensified delivery demands. After two days of hearings, the board deemed the agreement between Canada Post and the CUPW unlikely by year’s end. Consequently, they ordered approximately 55,000 postal workers to return to their jobs under extended agreements.
The re-emergence of service aimed to alleviate the urgent needs of businesses and consumers during the holiday shopping surge. MacKinnon noted, “Canadians cannot continue to bear the consequences of this impasse.” Alongside the reinstatement of services, Canada Post announced it agreed to apply a five percent wage increase retroactive to the expiration of previous contracts.
Despite the outwardly positive nature of the government’s decision, internal reactions were not as favorable. Craig Dyer, president of the St. John's CUPW local, described his members as "very confused, very angry" about the government’s decision to enforce the back-to-work order. “We believe it was orchestrated this way,” Dyer stated, transparency seemingly lost amid tug-of-war negotiations.
Industry experts have expressed concern about the possibility of customers permanently choosing alternative delivery services after relying on private carriers during the strike. Ian Lee, business professor at Carleton University, highlighted the diminishing share Canada Post holds within the parcel market, noting it had slumped to just 29 percent compared to 62 percent pre-pandemic. He cautioned, “This is going to accelerate the digitization of everything,” predicting significant long-term losses for traditional mail services.
With the return to work looming, Canada Post faces the urgent task of processing backlogged mail and parcels trapped during the strike. The operator warned customers to expect delays as operations resume, emphasizing the challenges faced due to operational limitations following the strike.
To prevent similar future occurrences, MacKinnon disclosed plans to appoint an industrial inquiry commission. This body will investigate the root causes contributing to the protracted strike and generate recommendations by mid-May 2025 to help both Canada Post and the CUPW achieve sustainable agreements moving forward.
While the reinstatement of mail delivery service was celebrated, the strike’s aftermath has left both workers and management reflective on the tensions leading to government intervention and the future viability of Canada Post. Dyer’s assertion, reflecting palpable frustration among members, articulated the complex emotions at play: “I can tell you our members are upset.”
While the immediate crisis might have been resolved, this incident presents stark questions concerning labor rights, governmental influence, and the sustainability of Canada Post as it navigates shifting market demands within the ever-evolving delivery industry.
