With union negotiations at a standstill, Canadian businesses could face significant delivery delays and increased costs.
Canada is bracing for a potential Canada Post labour strike as negotiations between the postal corporation and the Canadian Union of Postal Workers (CUPW) have been paused.
With just a week remaining before the current collective agreements expire on May 22, 2025, the risk of disruption is growing.
In a statement on its website, Canada Post said, “This pause will allow Canada Post to focus on preparing comprehensive proposals aimed at moving discussions forward constructively.”
However, CUPW stated that Canada Post has not yet provided a date for when those proposals will be presented.
The union has requested a return to the bargaining table with the support of a mediator. It has also intensified its stance on the key issues under consideration, leaving little room for a deal to be reached.
Without an agreement in place, a strike is very likely and would disrupt domestic and international mail and parcel services.
If it does go through, a Canada Post labour strike would impact various sectors, particularly businesses that rely on mail and low-cost shipping options.
This would be the second time in under six months that Canada Post goes on strike, following a 32-day walkout by 55,000 employees in November and December 2024.
Tensions are escalating between Canada Post and CUPW as both sides clash over employee benefits.
While the union is pushing for improved wages, health and safety benefits, job security and pensions, Canada Post states that a $845 million operating loss in 2023 is a major obstacle in meeting those demands.
Canada Post and CUPW have been engaged in discussions for several months. Their talks follow a request from former Labour Minister Steven MacKinnon and a mandate from the federal labour relations board for workers to return to their duties in December 2024.
Talks are currently paused but could resume if recommendations from a federal industrial inquiry commission, due on May 15, help move the process forward.
Labour disputes are not new to Canada Post.
The postal service has historically experienced numerous strikes, walkouts, and lockouts—many of which resulted in widespread service disruptions, government intervention, and long periods of uncertainty for Canadian businesses and individuals.
In 2018, rotating strikes launched by CUPW began on October 22 and affected mail delivery nationwide. After five weeks of disruption, the federal government passed Bill C-89, which required workers to return to their jobs. Although service resumed, the strike emphasized long-standing issues related to pay, job security, and working conditions.
In 2011, CUPW began rotating strikes on June 3. In response, Canada Post issued a full lockout on June 14—which halted all mail services. The federal government intervened again, introducing legislation that brought operations back to work. During the strike period, Canada Post reported revenue losses exceeding $70 million, while independent reports estimated total losses of around $200 million.
Moreover, between 1965 and 2005, Canada Post experienced 19 different work stoppages, including strikes, walkouts, and lockouts. On several occasions—in 1987, 1991, and 1997—the government enacted legislation to end the disputes.
To avoid potential disruptions from a Canada Post labour strike, Canadian businesses using their service should consider:
At Cole International, we offer freight forwarding and customs brokerage services to ensure your goods are moved seamlessly and your customs are cleared effortlessly.
If you use Canada Post, please reach out to one of our trade professionals to discuss the impact of a strike on your business and explore alternative postal delivery options.