Canada’s postal workers launched a nationwide strike Thursday, bringing mail service to a halt hours after the federal government announced sweeping reforms to the financially troubled Crown corporation.
Prime Minister Mark Carney warned over the weekend that Canada Post is “not viable” in its current form, losing $10 million daily with analysts projecting losses of $1.5 billion for 2025. The corporation has hemorrhaged $5 billion over the past decade.
Minister Joël Lightbound announced Thursday that the government is directing Canada Post to end home delivery for 4 million addresses, close rural post offices, and reduce delivery standards. The corporation has 45 days to submit a cost-savings plan.
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“Canada Post is effectively insolvent,” Lightbound said. “Repeated bailouts from the federal government are not the solution.”
The Canadian Union of Postal Workers, representing 55,000 employees, responded within hours by calling all members off the job.
“In response to the government’s attack on our postal service and workers, effective immediately, all CUPW members at Canada Post are on a nationwide strike,” the union said in a statement.
The stoppage has halted all mail and package handling, with certain postal outlets shutting their doors. Canada Post warned that significant delays will continue even after workers return as the system works through accumulated backlogs.
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The strike marks the second major work stoppage in less than a year. Workers walked off the job for more than a month during the 2024 holiday season before the government ordered them back to work.
Contract negotiations have dragged on for nearly two years. The union rejected a government-backed offer of 13% wage increases, demanding 19%. Workers currently lack a collective agreement since their previous contract expired.
CUPW argues the reforms will devastate service to rural and remote communities while eliminating jobs. The union contends that uncertainty around the labor dispute, rather than operational problems, has driven the corporation’s financial troubles.
Canada Post reported a $407 million loss in the second quarter alone. Earlier this year, the federal government provided a $1 billion cash injection to keep operations running.
The strike affects millions of Canadians and businesses nationwide at a critical time when the corporation’s future remains uncertain.
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