canada postal workers strike

A changing battlefield: what's happening at Canada Post?

Canada Post, the Crown corporation that delivers mail and packages across the nation, is deeply involved in a large-scale labour dispute with its union, the Canadian Union of Postal Workers (CUPW). A national strike which started as a local issue is becoming a matter of rotating stoppages, and behind the dispute, there are both economic and structural forces at play. Below is an analysis of the most important events so far.

Key events

On September 25, 2025, CUPW went on a national strike because of drastic changes unveiled by Canada Post and the federal government. Mail delivery and packages were suspended, some post offices shut down, and guarantees of service were suspended.

The union's key grievances: resistance against planned cuts such as eliminating door-to-door delivery in the long term, shutting rural post offices, and what they characterize as cost-cutting that erodes jobs and service standards.

Meanwhile, Canada Post and the government contend the service is in a "crisis" — with a loss of billions — and reforms are imperative to make the service viable. 

On October 10, the union said it would reduce the national strike back and move into rotating stoppages (i.e., choose locations or times will be offline) so mail starts flowing again while the heat stays on.

The dynamic between labor rights, bargaining, and government intervention is also on the table. For instance, the Canada Industrial Relations Board (CIRB) has just upheld the union's appeal against a forced back-to-work order from earlier.

Why this is important: service disruption, business risk & structural change

Disruption to Canadians and businesses

Mail and parcel delivery is a pillar service for most Canadians, and the strike (and continuing rotating stoppages) have far-reaching implications:

During the nationwide halt, Canada Post had assured that mail and packages "will not be processed or delivered for the duration" of the strike, and new items would not be taken in.

Business groups warn of significant dangers. The Canadian Federation of Independent Business (CFIB) added that the strike last year cost small businesses more than $1 billion, and now with the lead-up to the busy holiday period, the timing is particularly ill-timed.

Even partial restoration of service under rotating strikes leaves uncertainty high — businesses and consumers can't rely on delivery consistency.

Structural and financial problems

Canada Post has been in precipitous decline in volumes of traditional letter mail, while parcel delivery, once its growth driver, is now intensely competitive. The corporation posted cumulative losses since 2018 in billions.

The federal government is driving changes: ending moratoriums on transforming door-to-door delivery to community mailboxes, consolidating some rural post offices, revising delivery standards and service models.

For the workers and the union, secure employment, working conditions, increases in wages, and protection for benefits are key concerns — particularly in the wake of a shifting business model at Canada Post.

The balance between reform and labour rights

This strike also underlines the thin line between required institutional reform and workers' rights:

The state claims that emergency measures must be taken to avoid having to bail-out repeatedly (Canada Post apparently received a multi-billion-dollar stand-by loan last year) and to adapt operations to the new reality. 

The union claims the reforms are being forced on its members without sufficient negotiation or consideration for front-line workers and the communities they serve.

Legal regimes (eg Section 107 of the Canada Labour Code) permitting government interference in strikes involving federally regulated sectors are being challenged also. The CIRB decision recently confirmed the right of government intervention.

What's next / what to watch

At present, the national full-scale strike is done, but the rotating strikes ensure unpredictability persists. Some next-steps and watch-outs are:

Negotiation update: The union and Canada Post still need to come to a new collective agreement. Canada Post's May 21, 2025 proposal had included increases in wages (6 % year one, then 3 %, 2 %, 2 %) as well as defence of defined benefit pensions for existing workers.

How the union reacts and if that offer is adjusted will be an important indicator.

Implementation of reforms: The government is looking for Canada Post to return to the table with a detailed "right-sizing" plan by early November.

The speed and nature of that plan — including on rural services and changes to delivery models — will impact both workers and communities.

Service stability: For consumers and businesses, how and whether mail and parcel deliveries stabilize will be significant. Despite rolling strikes enabling some flexibility, residual delays, backlogs, and uncertainty will exist.

Economic impact: Additional stops or strikes will continue to wear away confidence in the postal service, raise costs (particularly for small businesses depending on cheap national delivery), and possibly speed up transition to private courier services.

Public & political perception: The way the public perceives each party (workers vs Crown corporation vs government) can affect policy and negotiations. Should the public strongly condemn service disruption, there might be more pressure for rapid solution or legislation.

Implications for service dependents and businesses

Being a consumer, small business, or community that depends on postal services in Canada, here are actionable take-aways:

Prepare for delays or changes: Whether you’re sending parcels, letters, bills, cheques, or waiting for documents (e.g., government notices or passports) expect longer lead times and unpredictable scheduling.

Explore alternative channels: With traditional mail under strain, alternatives like electronic payment, digital notices, private courier services (where feasible) may alleviate some of the pain.

Keep an eye on local levels of service: Due to rotating strikes, disruption of service can be regional. What works in one region can be held up in another.

Mitigation of risk to small businesses: Companies that rely on reliable delivery (particularly holiday periods) should review risks: i.e., have backup shipping carriers, advise customers of possible delays, and adjust inventory/shipping deadlines.

Community & rural considerations: For remote, rural, or Indigenous-serviced communities, the possible conversion away from door-to-door delivery, post-office closing, or service level reductions can translate to greater inconvenience to access postal services — an element both in day-to-day convenience and inequity terms.

Final thoughts

The Canada Post labour dispute is not merely a matter of wages and working conditions — it is a conflict essentially between the needs of an evolving business model for a national post office and the rights, livelihoods, and service expectations of workers and Canadians. The change from a national-scale walkout to rotating stoppages is a tactical adjustment by the union, but indicates that the issues at root are still unresolved.

For users of the service who are Canadians, the first worry is reliability — for bills, parcels, mail, vital documents — and, until a solid agreement is achieved, uncertainty will continue. For the government and Canada Post, the issue is how to balance financially viable with service fairness and labour equity. For CUPW-represented workers, maintaining job security, equitable wages, and substantial voice in structural change is their priority.

In the end, how this works out will be important not only for the current dispute, but for the future of national postal services in the context of rapidly changing technology, consumer expectations, and cost pressures.