Canada Post Strike Continues as Mediation Temporarily Suspended Amid Deadlock

The Canada Post strike, now nearing the two-week mark, shows no signs of resolution as Labour Minister Steven MacKinnon announced that negotiations remain deadlocked on key issues. In a statement shared on X, MacKinnon revealed that the special federal mediator has temporarily stepped away to allow both parties time to reassess their positions.

“This pause in mediation activities will hopefully permit the parties to reassess their positions and return to the bargaining table with renewed resolve,” MacKinnon stated. He added that he has summoned representatives from both sides to his office to emphasize their sole responsibility in resolving the impasse.

“When productive bargaining resumes, the special mediator will re-engage the parties. Canadians are counting on them to create these conditions quickly,” he stressed.

The Canadian Union of Postal Workers (CUPW) has been vocal about its demands, which include salary adjustments to match inflation, increased paid medical days, enhanced benefits, and a halt to the use of private contractors for deliveries. A recent update from CUPW highlighted tensions, noting that a Canada Post labour relations manager suggested the company might contract out weekend parcel deliveries, which the union interpreted as a threat.

CUPW is also pushing for the hiring of more full-time staff, citing ongoing issues with retention and high training costs. The union claims that despite these challenges, Canada Post continues to rely heavily on temporary workers, undermining workforce stability.

Canada Post, however, maintains that it has a robust full-time workforce, with approximately 95% of delivery teams being full-time employees. The organization has faced financial strain in recent years, reporting over $3 billion in losses since 2018 and a $315 million pre-tax loss in Q3 of 2024.

In its latest statement, Canada Post defended its negotiation stance, citing the need for flexibility in its delivery model to compete in a rapidly evolving parcel delivery market. “These changes are necessary to better compete in the parcel business, better serve Canadians, and drive much-needed revenue growth,” the company explained.

The strike has already taken a toll on operations, with Canada Post estimating a loss of 10 million parcels since the industrial action began, based on last year’s data for the same period.

As Canadians await a resolution, pressure mounts on both sides to find common ground. The ongoing strike not only disrupts services but also highlights broader concerns about the future of mail and parcel delivery in a digital age. With mediation on hold, the next steps could determine the direction of Canada Post’s operations and its workforce for years to come.