Postal workers across Canada initiated a strike on Friday, focusing on issues related to pay and working conditions, which is anticipated to significantly disrupt deliveries during the busy holiday season.
The Canadian Union of Postal Workers, representing approximately 55,000 members, announced the nationwide strike, which commenced at midnight, following a year of unsuccessful negotiations with Canada Post, the primary postal service provider in the country.
As a result of the strike, Canada Post's operations will be halted, meaning that no mail or parcels will be processed or delivered. The company has advised customers to expect delays for items already in transit and noted that some post offices will temporarily close.
Canada Post stated, “A national strike of any length will impact service to Canadians well after the strike activity ends.” Meanwhile, other courier services, which have been increasing their market share, will continue to operate.
Last month, postal workers voted to strike after prolonged negotiations failed to produce a new labor agreement. Canada Post had proposed an 11.5 percent wage increase over four years, along with pension and job security benefits, and changes aimed at creating a more flexible delivery model that would extend operations to seven days a week.
However, the union rejected this offer, claiming it did not meet their demands and would reduce benefits and working conditions. The union is seeking a 22 percent wage increase over four years, paid medical leave, improved health coverage, and additional benefits.
The union stated, “Our demands are reasonable: fair wages, safe working conditions, the right to retire with dignity and the expansion of services at the public post office.” They expressed hope for a negotiated collective agreement, contingent on Canada Post's willingness to address outstanding issues.
Since the strike announcement, Canada Post has reported a decline in business as customers have turned to private competitors or ceased using its services. The volume of parcels handled by Canada Post decreased by 28 percent in one week this month compared to the same period last year, which is typically their busiest time.
Prior to the strike, Canada Post warned that a labor disruption would adversely affect millions of Canadians and businesses relying on postal services, exacerbating the company's existing financial difficulties. The postal service has faced significant financial and operational challenges in the competitive parcel delivery market.
In the first half of 2024, Canada Post reported operating losses of 490 million Canadian dollars (approximately $350 million), with total losses exceeding 3 billion Canadian dollars (about $2.14 billion) since 2018.
The government has intervened by sending mediators to facilitate negotiations between the two parties, as stated by Canada's labor minister. He emphasized the importance of reaching an agreement for the benefit of Canadians.