Canada Post has received strike notices from the Canadian Union of Postal Workers (CUPW), for both Urban and RSMC (Rural and Suburban Mail Carriers) bargaining units. The notices indicate that CUPW will be in a legal position to begin strike activity on November 15 at 12:01 a.m. ET.
In the event CUPW initiates rotating strike activity, Canada Post intends to continue delivering for Canadians and Canadian businesses while working to reach negotiated agreements. However, the ongoing possibility of a labour disruption has been significantly eroding Canada Post’s volumes and escalating the negative financial impact on the company.
Canada Post has notified the union that unless new agreements are reached, the current collective agreements will no longer apply as of Friday. The Corporation will then be in a position, using the means provided in the Canada Labour Code, to adjust operations based on its operational realities and business needs.
Parcel volumes decline 28 per cent and continue to slide at a usually busy time
Retailers require certainty for their shipments at this time of year and continue to move more and more of their parcels to other delivery companies. This is typically Canada Post’s busiest time of the year, bringing much needed revenue to the organization.
Delivered parcel volumes have been in an accelerating decline since CUPW announced its strike mandate on October 25. Last week, Canada Post’s parcel volumes declined by 28 per cent compared to the same week of the previous year. That represents 1.3 million parcels – or more than a day’s worth of delivered parcels at this time of year – that went to competitors instead of Canada Post. With CUPW’s strike notice, the company expects this trend to accelerate.
Labour disruption would have lasting impact
A labour disruption would affect the millions of Canadians and businesses who rely on the postal service, and deepen the company’s already serious financial situation. It is critical that both parties focus their energies on resolving issues to reach negotiated agreements.
In the event of a labour disruption, the Corporation will work to minimize service disruptions, but customers may experience delays. Mail and parcels flow through Canada Post’s highly integrated national network each day to get from sender to receiver. Shutting down facilities or regions with rotating strikes can cause immediate and prolonged ripple effects throughout the network.
Postal system must change to compete in today’s delivery market
Canada Post is rapidly falling behind in today’s highly competitive, customer-focused parcel delivery market. In the first half of 2024, the company recorded a loss from operations of $490 million. Since 2018, the Corporation has lost more than $3 billion.
To secure the future of the business, the Corporation needs a more flexible and affordable delivery model that allows it to deliver seven days a week and quickly respond to the needs of customers. Without these changes, the significant challenges facing Canada Post will intensify.
Canada Post is committed to protecting what’s most important to employees. The company’s recent global offers ensure current employees don’t lose ground by protecting the defined benefit pension, job security provisions, leave entitlements and health benefits, while proposing competitive wage increases.
Delivery of socio-economic cheques will continue during a disruption
Canada Post and CUPW have agreed to continue the delivery of socio-economic cheques during any upcoming labour disruption, for eligible and participating government organizations. The agreement ensures government financial assistance delivered by mail will reach seniors and other Canadians who rely on it.
Socio-economic cheques for the month of November will be delivered on November 20. Canadians will receive their cheques the same way they normally receive their mail.
Stay up to date
Visit canadapost.ca/negotiations for the latest information on negotiations and a list of affected locations in the event of labour disruptions.
