Canada Post workers might soon be putting down their mailbags and grabbing picket signs. The employees of the Crown corporation, represented by the Canadian Union of Postal Workers (CUPW), have been in contract talks since November 2023 — but a deal still appears to be out of reach. This week, CUPW issued a 72-hour strike notice, putting Canadians on edge just as the holiday mailing rush kicks in, and leaving them wondering: will my packages arrive on time?

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Will Canada Post deliver? A look inside the labour dispute, the stakes and what comes next Back to video

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What are the main issues?

Negotiations between the Crown corporation and CUPW have stalled over core issues, including wage increases, pensions, and medical leaves. More than 95 per cent of urban and rural mail carriers recently voted to support a strike, expressing frustration with what they see as insufficient offers from Canada Post. CUPW President Jan Simpson stated the union hasn’t decided on immediate job action, saying it “will depend on Canada Post’s actions at the bargaining table.” Canada Post’s management has proposed an 11.5 per cent wage increase over four years and a flexible delivery model that includes weekend service. The union is proposing 22 per cent over four years, along with other demands including a guaranteed 40-hour workweek and 10 paid bankable medical days (on top of their current seven paid personal days). However, Canada Post has also cautioned that its “deteriorating financial situation” limits its ability to meet all union demands without compromising its financial stability.

How would a potential strike impact businesses, customers, and the holiday season?

In 2018, CUPW workers launched a “rotating” strike that interrupted service to major Canadian cities for 24 hours at a time. The federal government intervened, passing strike-ending legislation, despite strong opposition from labour leaders. Now, as Canada Post faces financial difficulties — having lost more than $3 billion since 2018 — it finds itself in another standoff, with critical implications for the holiday season. A strike would cause widespread disruptions to Canada Post’s services, and would be particularly challenging for rural communities where alternative shipping services may be limited. Businesses, especially smaller ones, may face higher shipping costs from private carriers like UPS or FedEx. Canada Post has stated that it is focused on maintaining essential services, but there’s no doubt a prolonged strike would create significant challenges for the corporation and its customers.

What is Canada Post’s strategy in the face of rising competition?

In response to competition from private carriers, Canada Post has introduced several initiatives aimed at maintaining its relevance. One strategy includes expanding parcel delivery to seven days a week in select regions. Despite these efforts, however, the corporation reported a $490 million loss in the first half of 2024, the result of decreased transaction mail volumes and increased operational costs. While private carriers continue to attract customers, Canada Post maintains a sizeable share of rural markets due to its broad delivery network. The company has emphasized the need to adopt a more flexible delivery model to keep up with evolving customer expectations and sustain its market position.

What is the outlook for the Crown corporation?

Canada Post distinguishes itself with services like FlexDelivery, which allows customers to pick up packages at their convenience. According to the corporation, this extensive reach, particularly in remote and rural areas, remains unmatched by private carriers. Looking ahead, Canada Post faces challenges in maintaining these strengths while managing financial losses. As the company and union continue to negotiate, both sides acknowledge the importance of adapting to changing market demands. Canada Post’s ability to innovate while preserving its unique service offerings will be crucial in defining its future in an increasingly competitive landscape.

• Email: shcampbell@postmedia.com

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