Canada Post Strike Intensifies as Negotiations Stall, Strike Enters 2nd Week
Canada Post reported a $315 million loss before tax in the third quarter, exceeding the $290 million loss during the same period last year.
The Canada Post strike entered its second week with little progress at the negotiating table, as the postal service and the Canadian Union of Postal Workers (CUPW) remain at odds over key issues. Talks continued over the weekend with the assistance of a special mediator, but no significant breakthroughs have been reported.
Jon Hamilton, Canada Post’s vice-president of strategic communications, emphasized the Crown corporation’s desire to reach an equitable agreement but warned that fully meeting union demands could jeopardize business growth. “We want to maintain good-paying jobs, but there’s a limit to how far we can go,” Hamilton stated.
Canada Post reported a $315 million loss before tax in the third quarter, exceeding the $290 million loss during the same period last year. The company is on track to post its seventh consecutive annual loss in 2024, signaling continued financial challenges amid declining letter mail volumes and rising operational costs.
The strike has exacerbated these struggles, with more than eight million parcels left undelivered compared to the same period in 2023. The company has also faced increased competition from private carriers like Purolator and FedEx, which have capitalized on the disruption.
Over 55,000 postal workers walked off the job on November 15, citing unresolved disputes over wages, job security, and working conditions. CUPW President Jan Simpson criticized Canada Post for attempting to address its financial woes at the expense of employees. “You can’t save your company on the backs of workers,” Simpson said, adding that layoffs and benefit cancellations have already begun to impact morale.
The union is demanding a cumulative 24% wage increase over four years to keep up with inflation, while Canada Post has offered an 11.5% raise over the same period. Another contentious issue is the company’s plan to hire part-time contract workers for weekend parcel deliveries—a strategy Simpson described as creating a “gigified workplace” within a Crown corporation.
“You should be lifting people up, not racing to the bottom,” Simpson argued.
Canada Post sees weekend parcel delivery as a potential growth area, but insists that adding more full-time workers would increase fixed costs and reduce competitiveness. Hamilton explained, “Adding these costs could shrink our business further instead of helping us grow.”
Meanwhile, CUPW has proposed that full-time employees handle weekend deliveries, contending that part-time roles would lower wages and benefits for new hires.
As the strike drags on, Canada Post faces mounting pressure to resolve the dispute while grappling with its worsening financial position. With the holiday season approaching, delayed parcels and diminished service may amplify public frustration, forcing both sides to find common ground quickly.
Industry analysts warn that the prolonged impasse could further erode Canada Post’s market share, giving private competitors a stronger foothold in the delivery sector. Whether an agreement can be reached before irreparable damage is done remains uncertain.