Canadians were taken by surprise on Thursday evening as the union representing Canada’s postal workers called for a nationwide strike. This move followed the federal government’s announcement of major reforms to Canada Post, directing the Crown corporation to cease home delivery and close certain rural mail outlets. Canada Post reported a significant financial loss of $448 million before tax in the first half of 2025, compared to a $30 million loss in the same period of 2024. Despite a $1-billion injection from the government earlier in the year to sustain operations, the corporation is reportedly losing around $10 million per day.
The Canadian Union of Postal Workers expressed outrage at the reforms, leading to all Canada Post members walking off the job. While Canada Post welcomed the changes, the union criticized them and initiated the strike nationwide. The strike has been ongoing for some time, with actions such as an overtime ban and work-to-rule campaigns being undertaken since May.
The union, representing 55,000 postal workers, was taken aback by the sudden reforms and argued that the changes initiated by Canada Post and the government are diminishing the demand for postal services. Contract negotiations between Canada Post and the union have been ongoing for nearly two years, focusing on issues like wages and part-time employment as the postal service continues to face substantial financial challenges.
During the strike, Canada Post stated that there would be no processing or delivery of mail or parcels, and service guarantees for items in transit would be suspended. Essential government benefit cheques and live animal deliveries will continue, while the backlog of packages and letters from the previous holiday season strike is being addressed.
In response to the restructuring announcement, which includes the potential end of home delivery, the union expressed disappointment and highlighted the government’s decision to allow Canada Post to convert fully to community mailboxes. This move is expected to save approximately $400 million annually. While the transition from door-to-door delivery to community mailboxes may take up to a decade, some changes are likely to be implemented sooner.
Overall, the strike has caused disruptions in mail services, with both Canada Post and the union standing firm on their positions amidst ongoing negotiations and disagreements.
