The Canadian mail system faces its second major service interruption in less than a year after the Canadian Union of Postal Workers (CUPW) delivered strike notices Monday for action beginning Friday at midnight.
The labor dispute coincides with a federal report declaring the 158-year-old postal service is facing “an existential crisis” amid declining mail volumes and mounting financial losses.
“This creates significant uncertainty for our customers and employees alike,” Canada Post spokesperson Jon Hamilton told the National Post. “Small businesses, charities and many ordinary Canadians will be affected if mail service stops.”
The potential service disruption would halt mail processing and delivery across Canada, a country where postal operations serve approximately 17 million addresses through a network that handles billions of mail pieces annually.
William Kaplan, who led a federal inquiry into the postal service’s challenges, warned in his 162-page report released May 16 that without major structural changes, Canada Post’s financial situation would continue deteriorating. Financial records show the Crown corporation lost $845 million in 2023 while its share of the parcel delivery market shrunk dramatically as private competitors gained ground.
Kaplan’s report recommends controversial changes including eliminating residential door-delivery while preserving it for commercial customers, closing certain rural post offices, expanding community mailbox systems, and creating a part-time weekend delivery workforce.
Canada Post CEO Doug Ettinger issued a statement calling the report’s assessment valuable for understanding the challenges ahead. He indicated the corporation would work with union representatives and the government to implement necessary changes.
CUPW, representing more than 55,000 postal workers, strongly rejected the recommendations. Union spokesperson Sian Griffiths said in an email that numerous stakeholders, including municipalities and international organizations, had submitted thoughtful input that was disregarded in favor of proposals already sought by Canada Post management.
Negotiations reached an impasse last week when Canada Post announced on May 14 a “temporary pause” to prepare new proposals. CUPW officials claimed the corporation refused to consider their suggested compromise on weekend delivery using existing contract language.
The federal government has already intervened financially, providing access to $1.034 billion in repayable funding through 2025-26 to keep the postal service solvent. Ministers Patty Hajdu and John Zerucelli met separately with both sides May 17, encouraging them to use the commission’s report as a starting point for productive negotiations.
Last winter’s postal shutdown extended from late November into mid-December, disrupting holiday deliveries before federal intervention ordered employees back to work. That ruling extended the existing labor agreements through May 22, 2025, leading to the current action.
If the strike proceeds, most postal facilities will close immediately. Based on the previous work stoppage, only social assistance payments and live animal shipments would continue to be delivered, while no new items would enter the system.
Many businesses have already begun moving their shipments to alternative carriers in anticipation of Friday’s deadline, according to industry observers. Private courier services typically charge higher rates than Canada Post’s subsidized services.
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