Canada Post workers could strike. Here’s what you need to know

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The Canadian Union of Postal Workers (CUPW), which represents more than 60,000 employees, was in a position to legally strike as of Nov. 3.

No notice has yet been given. The union says it is still in a position to strike at any point if negotiations with Canada Post break down.

Negotiations between Canada Post and CUPW began almost a year ago in November 2023. Negotiations were to renew agreements with CUPW’s rural and suburban mail carriers and urban carriers.

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Union members voted between Sept. 9 and Oct. 20 on whether or not they should strike. An overwhelming number voted in favour of striking, with more than 95 per cent of both urban and rural workers supporting the decision, if it comes to it.

Here’s everything you need to know about a potential Canada Post strike.

What are the sticking points?

In an Oct. 28 statement, CUPW said it is calling for “fair wages, safe working conditions, and the right to retire with dignity.” The union is also calling for paid meal and rest breaks when working for more than five hours. It added that these changes also need to maintain the protection of the service the workers provide to all communities.

“Our goal is not to simply make demands, but to work together toward solutions that support the long-term success of our public post office,” Jan Simpson, CUPW national president, said in a statement.

In last week’s negotiations, Canada Post said it would offer an annual wage increase of almost 12 per cent over four years. It also committed to protecting pensions, job security and health benefits for current employees.

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In a statement released on Wednesday, CUPW said these offers “fall short” of what union members were asking for. The union says Canada Post is pushing for an approach that would delay a “collective agreement” and put money towards arbitrators instead of “investing directly” in its workers.

How much mail do people still send?

Over the years, the amount of mail Canadians send and receive has decreased. Canada Post said it had its “peak mail volume” back in 2006. A total of 5.5 billion letters were delivered that year. In 2023, that number was only 2.2 billion. Canada Post also said that in 2006, Canadian households got around seven letters a week, whereas now it is only two.

“In less than two decades, our country has evolved from peak mail to an era defined by digital commerce,” Canada Post said in its 2023 annual report.

According to Canada Post’s 2022 annual report, the company’s volume of mail fell by 75 million pieces compared to 2021.

What’s the state of Canada Post’s finances?

A strike will likely mean a greater hit to Canada Post’s finances. If workers strike, Canadians will likely turn to other companies to deliver mail.

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Canada Post said on Oct. 25 that a strike would deepen “the company’s already serious financial situation.” In its 2023 annual report, Canada Post said the company lost almost $750 million, before tax. This is $200 million more than Canada Post lost in 2022.

Last week, the company said that within the first six months of 2024, it had lost $490 million. It also said that since 2018, there has been a total loss of $3 billion, before tax.

“Recurring financial losses threaten the Corporation’s ability to fulfill the objects set by the shareholder,” which includes “providing a standard of postal service that meets the needs of Canadians,” Canada Post’s second quarter financial report stated.

How will this impact sending mail?

A strike would have a significant impact on mailing in Canada, as Canada Post is the company that delivers the most parcels in the country. It could lead to delays in package delivery, as the holiday season approaches, the time of year when people and companies plan to ship more packages.

Joyce Okunusi, the owner of Joyce’s Closet Boutique in Calgary, told CTV News that a Canada Post strike would be “very detrimental” to her business. “We would lose tens of thousands and dollars if that happened to us.”

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Who will be impacted the most?

Rural communities are likely to face the biggest impact as there are not many other options for receiving or sending mail, besides Canada Post. Due to the lower population and further distances, delivering mail to these communities tends to come at a greater cost.

According to its 2023 annual report, Canada Post goes to these communities on a daily basis and each week, more than 280 flights go out to remote areas to deliver packages. Compared to deliveries made within urban areas, Canada Post delivers 40 per cent more to small communities and rural areas. Canada Post also helps other delivery services in getting their packages to these more remote areas.

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