Why Is Canada Post On Strike For The Second Time In Six Months?

Photo Credit: Wikimedia

On May 23, Canada Post workers went on strike for the second time in the past six months. CTV reports that from how negotiations are going, this strike may lead nowhere, as disagreements between Canada Post and the Canadian Union of Postal Workers (CUPW) persist. 

This strike differs from the last, as the CUPW has implemented a nationwide overtime ban. As a result, over 55,000 Canada Post workers have refused to work beyond their 8-hour shifts, slowing down the company's delivery service. Canada Post shared in a written statement in late May, “the impact of the ongoing uncertainty on our business is significant, but the impact on the Canadian economy is greater.” 

The strike in late May occurred in the aftermath of the strike in November 2024. According to the CBC, the 2024 strike ended when the federal government ordered employees back to work under their existing contracts. These contracts ended on May 22, and after seeing no changes made by the corporation, the union continued to ask for better worker pay, benefits, and pensions, and to give more hours to full-time workers. 

The postal union sent a strike notice to Canada Post on May 19, and the ban went into effect on May 23. President of CUPW Vancouver, Anju Parmar, commented to The Tyee, “We knew all along we might strike again. We have the same demands on the table. Nothing has been resolved.” She also added that this ban will be in effect until Canada Post addresses the union’s needs. 

According to the CBC, Canada Post made offers to the postal union a day before the strike ban deadline. Some of these offers include a 13.59 per cent wage increase over four years. In a written statement, CUPW revealed, this is around 6 per cent short of what the union has asked for, since they think it won’t help keep pace with the rise in living costs. 

Negotiations have been taking place for the union and the postal company to agree on the proposed changes. According to The Tyee, negotiations began in November 2023 and have been ongoing since. Hena Singh, an employment lawyer and a mediator, commented to the CBC that these negotiations appear to be leading nowhere. 

A couple of additional meetings have occurred since the strike last year, but no agreements complied with the needs of both sides. The postal union argues that Canada Post is neglecting the needs and concerns of their workers throughout the bargaining process. In response to this, Lisa Liu, a spokesperson for Canada Post, commented to the CBC, "Canada Post is committed to the bargaining process and is striving to reach new collective agreements that will help us better serve the changing needs of Canadians.” 

In late May, the CUPW rejected what Canada Post put as their final offers. Most of these changes act on the recommendations set by the Industrial Inquiry Commission (IIC). The main points from the report include removing the requirement for employees to work overtime. The union argues that this would limit the hours given to full-time workers, as Canada Post will begin to hire more part-time workers instead. The Tyee reported that the corporation is offering to sign bonuses of $500 and $1000, depending on job types and extra payments to workers if inflation reaches 7.16 per cent. 

In response to these new changes, CUPW said in a released statement that the corporation is “playing hardball.” They wrote that Canada Post did not mention wage increases or improvements for full-time workers. As a result, the union believes that this offer is far from satisfying workers’ needs, and they will continue to push for workers to have the compensation they need and deserve. 

While the union has been pressing for changes for their workers for nearly two years, the changes seem unlikely due to the financial situation the company is currently in. A financial report from 2024 warned that it could run out of money as soon as the second quarter of 2025. Though that prospect has not become a reality, Canada Post’s financial situation is still unsuitable to comply with the postal union’s needs. This situation has also affected negotiations between the two sides as the union is making requests that the company cannot address, according to Singh. 

On top of the financial effects taking a toll on the negotiation process, other issues between the union and corporation are developing. In early June, the union lodged an unfair labour act complaint against Canada Post, claiming that the company is bargaining with its members only, neglecting the union’s bargaining rights, according to Global News. Alongside that complaint, the union is accusing Canada Post of using “alarmist wording” on its website, where it provides updates on the bargaining process. CUPW claims that this wording has the intent to discredit the union and its reputation. 

As Canada Post works to come to an agreement with CUPW, competing mailing corporations have seen a surge in customers over the past few weeks. National Post reports that Stallion Express Inc., an e-commerce shipping service, saw a 22 per cent spike in new account requests and inquiries. While these corporations are seeing a growth in customers, various communities across the nation, especially rural areas, are seeing the opposite. During the strikes in the holiday season of last year, many Indigenous companies felt the blow of the strikes as mail courier services ceased in their areas. According to CBC, a lot of companies saw declines in their profits, especially during Black Friday and the holiday season, a time when they would normally receive the most income. These communities continue to be affected as services begin to slow with the nationwide ban.