Canada Post Strike Enters Second Week

As the Canada Post strike enters its second week, Canada Post President and CEO Doug Ettinger sent a letter to all Canadians highlighting the challenges the corporation faces and setting out its commitment to making the necessary changes while serving Canadians.

The Canadian Union of Postal Workers (CUPW) called for a nationwide strike on September 25 in response to the government's plan granting Canada Post the freedom to make reforms to address its deteriorating financial situation, media reports indicated. Joël Lightbound, the minister responsible for Canada Post, announced a number of changes last week, including allowing Canada Post to end home door delivery, reduce delivery frequency, and shutter some post offices. About four million addresses still receive home delivery service. 

Canada Post financial situation is dire. It is projected to lose $1.5 billion in 2025. Its share of the parcel delivery market has fallen from 62% in 2019 to below 24%, according to the corporation. A recent Freightwaves article notes, “Canada Post reported in late May a 50% drop in parcel volumes, year over year, because protracted contract negotiations were eroding shipper confidence in the postal operator. Many businesses switched to alternative final-mile couriers after a 32-day strike during the last holiday season and the threat of another strike.”