What is the Canada Post strike all about? Here's what to know about the corporation and its union

Canada Post has been notified of a possible strike on Friday after negotiations between the corporation and its workers have proven to be unsuccessful. On Wednesday, the union said it would be reviewing proposals from the corporation. However, the two sides have not been able to agree on basic terms thus far. According to a recently released report , they have “diametrically opposed world views and assessments of the challenges to be faced and the solutions to them.” The report, called the Industrial Inquiry Commission (IIC), is the result of a series of hearings held between Canada Post and its union, the Canadian Union of Postal Workers (CUPW). In its latest proposals , Canada Post is offering a 13 per cent total wage increase for current employees, as well as “better income replacement for leave under the short-term disability program, and six added personal days locked into the collective agreements.” The union said its decision to strike was made as the collective agreements for its bargaining units are set to expire on May 23 at midnight. These agreements were extended by the government in December 2024, after the union’s last strike, which lasted 32 days. It came to an end after intervention from then minister of labour Steven MacKinnon , who requested that the Canada Industrial Relations Board (CIRB) order Canada Post employees back to work if it believed that an agreement wouldn’t be reached by the end of the year. Union workers were ordered to get back on the job on Dec. 17, 2024. Although it put an end to striking, the issues remained unresolved. What followed were ongoing negotiations, which have continued until the eve of the expiration of the latest collective agreements. Here’s what to know. What does the union want? The union has maintained that it wants “fair wages, safe working conditions, the right to retire with dignity, and the expansion of services at the public post office.” Canada Post employees who are part of CUPW are also fighting back against “drastic cuts,” such as closing post offices, ending door-to-door delivery, expanding Community Mailboxes, outsourcing to franchises, and even privatization. The union launched a campaign called Hands Off My Post Office to raise awareness about these issues. “Competing with U.S. e-commerce giants shouldn’t mean lower standards. Workers deserve fair treatment, and Canadians deserve reliable, to-the-door service,” the union said. What does Canada Post want? Canada Post has suffered major financial losses, which seem to be playing a role in its demands. It has said that it wants to reach collective agreements that protect workers and enhance wages and benefits “while reflecting the Corporations’ current realities.” “Since 2018, the Corporation has recorded more than $3 billion in losses before tax, and it will post another significant loss for 2024,” said Canada Post in a news release on Monday . “In early 2025, the Government of Canada announced repayable funding of up to $1.034 billion for Canada Post to prevent insolvency.” A part-time weekend workforce and workweek efficiencies are an immediate priority for Canada Post, the IIC report stated. Commissioner William Kaplan called the union’s proposals to grow its businesses “unrealistic,” as are its plans to duplicate services provided by other companies, such as “introducing postal banking, seniors check-ins, establishing artisanal markets at postal stations, and transforming postal stations into community social hubs.” “In my view,” wrote Kaplan, “given the financial crisis, Canada Post must focus on saving its core business, not on providing new services.” What are some of the sticking points between the union and Canada Post? The report summarized the main sticking points between the union and Canada Post as the corporation’s financial situation, its need to diversify or alter its delivery models in response to current business demands, Canada Post’s viability as it is currently configured, the union’s negotiated commitments to job security and full-time employment and the need to protect the health and safety of employees. Weekend work is a major sticking point that both parties cannot seem to agree upon. The new offers from Canada Post, which are now under review, maintain the need for part-time work, which increases “the company’s delivery flexibility, especially on weekends, while ensuring that letter carriers are not required to work weekend shifts.” However, the union insists that “preference should be given to full-time work,” it said in its weekend full-time concept and costing report in March. Canada Post also wants to end door-to-door delivery service, which is the first recommendation made in the IIC report, because it is a financial burden. The union says that the service is worth preserving because it meets the “needs of the Canadian people, particularly the elderly and disabled, while community mailboxes presented accessibility and other challenges.” As part of its latest proposals, Canada Post said it wants to implement dynamic routing, which it says is an industry standard that involves planning and optimizing delivery routes daily and “creating more consistent, predictable service for customers.” The report stated that the union agreed it could be cost-saving. But after a failed pilot project in 2017, Canada Post said the company and union could “not agree on many of its core components.”

• What happened last time Canada Post workers went on a strike?
• Canada Post strike: What happens to the parcels already accepted?

Our website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here.