For millions of Canadians, Canada Post is more than a delivery service—it’s a lifeline connecting communities, businesses, and families across vast distances. Yet, as of May 28, 2025, this vital institution faces renewed turmoil with the Canadian Union of Postal Workers (CUPW) locked in a bitter labour dispute. With an overtime ban in effect and the threat of a full strike looming, the nation watches anxiously as the situation has become more crucial than just a couple of months ago. This article explores the origins, stakes, financial backdrop, timeline, and latest twists in the Canada Post strike, offering a clear picture for Canadians seeking to understand its impact.
The Genesis of the Current Conflict
The roots of today’s Canada Post strike stretch back to November 15, 2023, when negotiations kicked off between Canada Post and CUPW, which represents roughly 55,000 postal workers. The goal was to forge new collective agreements to replace contracts that lapsed in 2022. But talks faltered over deep-seated disagreements, sparking a nationwide strike from November 15 to December 17, 2024. That 32-day walkout crippled mail and parcel delivery during the holiday rush, costing small businesses an estimated $1.6 billion, according to the Canadian Federation of Independent Business (CFIB).
The 2024 strike ended when Labour Minister Steven MacKinnon stepped in, directing the Canada Industrial Relations Board (CIRB) to order workers back and extend the old contracts until May 23, 2025. This pause was meant to foster a deal, but no agreement has emerged. On May 19, 2025, CUPW issued a 72-hour strike notice, hinting at action by May 23. Instead of a full strike, the union launched a nationwide overtime ban—a legal tactic that’s slowing operations and piling up delays. The standoff continues, with both sides digging in.
What’s at Stake: The Heart of the Dispute
The Canada Post strike hinges on a tangle of issues, each reflecting the union’s push for worker protections and the corporation’s drive for financial survival. Here’s a breakdown of the flashpoints:
- Wages: CUPW opened with a demand for a 24% wage hike over four years to offset inflation, later trimming it to 19%. Canada Post’s counteroffer, tabled May 21, 2025, offers a 13.59% compounded increase: 6% in year one, 3% in year two, and 2% in years three and four. The corporation cites its shaky finances as a limit, while workers argue they’re struggling to keep up with rising costs.
- Staffing and Job Security: The union wants to make permanent about 22,000 temporary and part-time workers, bolstering job stability. Canada Post, facing surging parcel volumes, proposes a part-time weekend workforce to cut overtime costs. CUPW resists, preferring to shift existing full-time staff to weekends.
- Work Rules: Canada Post seeks to adopt dynamic routing—a standard practice for optimizing delivery routes daily—and scrap a five-minute paid wash-up period it deems outdated. CUPW insists the wash-up time is a health necessity and warns that routing changes could overburden workers.
- Benefits and Future-Proofing: The union is pushing for better group benefits, including fertility treatment and gender-affirming care coverage, plus stronger protections against tech-driven layoffs. Canada Post’s offer adds six personal days and boosts short-term disability pay but keeps job security terms largely unchanged.
- Canada Post’s Finances: The corporation paints a grim picture, backed by a May 2025 Industrial Inquiry Commission (IIC) report calling it “effectively insolvent.” The report flags $3.8 billion in losses since 2018 and an $803 million deficit in the first nine months of 2024. CUPW questions the report’s impartiality, urging Canada Post to explore new ventures like postal banking or community services instead of squeezing workers.
A Sinking Ship? Canada Post’s Financial Woes
Canada Post’s balance sheet is a central sticking point. The corporation hasn’t turned a profit since 2017, battered by falling letter mail volumes and fierce competition in parcel delivery. Here’s a snapshot of its recent performance:
| Year | Loss Before Tax (CAD) | Parcel Delivery Market Share |
|---|---|---|
| 2022 | $548 million | 29% |
| 2023 | $748 million | 29% |
| 2024 (Q1-Q3) | $803 million | Not reported |
Back in 2019, Canada Post commanded 62% of the parcel market. By 2023, rivals like FedEx, UPS, DHL, and Amazon’s delivery network had slashed that to 29%. The mandate to serve remote regions, where private couriers rarely tread, piles on costs. A $1.03 billion government loan in January 2025 kept insolvency at bay, but Canada Post warns that another strike could drive customers to competitors for good.
A Timeline of Tensions
The dispute has unfolded over months, marked by strikes, interventions, and stalled talks. Key moments include:
| Date | Event |
|---|---|
| November 15, 2023 | Canada Post and CUPW begin talks for new contracts. |
| August 2, 2024 | CUPW calls in federal conciliators as negotiations stall. |
| November 12, 2024 | CUPW issues 72-hour strike notice; Canada Post threatens lockout. |
| November 15, 2024 | Nationwide strike halts mail and parcel delivery. |
| December 17, 2024 | CIRB orders workers back, extends contracts to May 23, 2025. |
| January-February 2025 | IIC holds hearings on Canada Post’s financial and labour issues. |
| May 15, 2025 | IIC report declares Canada Post “effectively insolvent.” |
| May 19, 2025 | CUPW issues 72-hour strike notice for May 23. |
| May 21, 2025 | Canada Post tables new offer; CUPW’s two-week truce proposal is rejected. |
| May 23, 2025 | CUPW launches overtime ban instead of full strike. |
| May 25, 2025 | Talks resume with mediators; CUPW reviews Canada Post’s 700-page offer. |
Source: Canada Post, CUPW, CBC News, CTV News, Global News.
Canada Post Strike Update Today
As of May 28, 2025, the Canada Post strike update today reveals a strained system limping along under the overtime ban. No full strike is active, but delays are mounting. CUPW and Canada Post met on May 25 with federal mediators, with more talks planned. The union slammed Canada Post for rejecting a two-week truce that would’ve given time to digest the corporation’s hefty contract proposal. Canada Post insists its offer protects perks like defined benefit pensions and up to seven weeks of vacation while addressing its budget woes. Customers face slower service, and businesses are turning to alternatives like Chit Chats to keep shipments moving.
Ripples Across Canada
The prospect of another Canada Post strike hits hard, especially for small businesses and rural residents. The 2024 strike left 8.5 million letters and 1.1 million parcels undelivered daily, creating chaos that lingered into 2025. The CFIB warns that a repeat could deepen economic strain, particularly with trade disputes simmering between Canada, the U.S., and China.
Rural and remote areas, where options like FedEx or UPS are scarce, are especially exposed. Government cheques, like Old Age Security or Employment Insurance, risk delays, pushing officials to promote direct deposit via Canada.ca. Local governments, such as the Township of South Stormont, warn of disruptions to tax payments and planning notices, nudging residents toward online or in-person alternatives.
The 2024 strike also derailed unique programs, like Canada Post’s Santa Claus letter initiative, and delayed voter cards for a December 16, 2024, by-election in Cloverdale—Langley City. A new strike could bring similar headaches.
Voices from the Public and Political Arena
Canadians are split on the Canada Post strike. A November 2024 Angus Reid poll found 34% siding with Canada Post, 29% with workers, and 37% staying neutral. The holiday timing of the 2024 strike fueled public ire, with some accusing workers of “ruining Christmas” by halting deliveries.
Politically, the Liberal government’s 2024 intervention via the CIRB stirred debate. The NDP, a linchpin in the minority government, has vowed not to back legislation forcing workers to return, a shift from past interventions in 1987, 1997, and 2018. This could tie the Liberals’ hands, forcing them to seek support from the Conservatives or Bloc Québécois to resolve a future strike.
A Troubled History
Canada Post’s labour woes are nothing new, with 19 strikes, lockouts, or walkouts since its founding. Notable clashes include:
- 1987, 1991, 1997: Workers were legislated back under majority governments.
- 2011: A Canada Post lockout ended with a two-year deal after back-to-work laws.
- 2018: Rotating strikes cost $135 million, with delays spilling into January 2019.
Today’s dispute, the second major clash in a year, underscores the persistent friction between Canada Post’s modernization efforts and CUPW’s fight for worker rights.
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