The “Canada Post” strike is expected to continue, as Canadian Labor Minister Steven MacKinnon stated that the parties are still “too far apart on the key issues” to reach an agreement. This statement reflects the ongoing tensions between “Canada Post” and the Canadian Union of Postal Workers (CUPW) amid disputes over wages, benefits, and job security.

The “Canada Post” strike that began on November 15, 2024, has caused significant disruptions to mail and parcel delivery operations across the country. More than 55,000 workers represented by the Canadian Union of Postal Workers (CUPW) are participating in the strike, following a year of negotiations that did not result in an agreement with Canada Post management.

The union is demanding that Canada Post hire more full-time employees, arguing that the company has significantly increased the number of part-time working hours at most of its locations, despite issues related to employee retention and training costs during the negotiation period.

Company response:

In an update sent by Canada Post via email to the media, it confirmed that it maintains a strong full-time workforce, despite the challenges of declining revenues and intense market competition.

It pointed out that approximately 95% of delivery teams work full-time, reflecting its commitment to providing reliable services despite difficult circumstances.

This issue remains a key focus in negotiations between the two parties, as the union sees the expansion of full-time work as the solution to providing better services, while Canada Post insists it needs flexibility to cope with financial and competitive pressures.

Key points of contention:

1. Wages: The union is demanding a total increase of 24% over four years, while Canada Post has only offered an increase of 11.5%.

2. Weekend work: The union refuses to use part-time workers for parcel delivery during weekends, accusing management of transforming jobs into a “gig economy” model.

3. Job security and benefits: Workers are seeking improved working conditions, increased paid sick leave days, and comprehensive employment benefits.

For its part, Canada Post is facing a significant financial crisis, having lost more than $3 billion since 2018, and struggling with a declining market share in parcel delivery against major companies like Amazon. Management asserts that it needs flexibility to provide competitive services, particularly in parcel delivery.

So far, mediation efforts have not made significant progress, and both parties remain at odds over the key issues. As the holiday season approaches, the strike is notably affecting the delivery of parcels and goods.

During the ongoing negotiations, Canada Post has confirmed that it has made detailed proposals aimed at modernizing its outdated mail delivery model, to make it more flexible. The company stated that these changes are necessary to improve its competitiveness in the parcel market, provide better services to Canadians, and increase the much-needed revenue.

Losses:

• Canada Post estimates its losses at over $3 billion since 2018.

• Its losses before tax were $315 million in the third quarter of 2024 alone.

Impact of the strike:

• Since the start of the strike on November 15, 2024, Canada Post has indicated that it has delivered about 10 million fewer parcels compared to the data recorded in the same period last year.

These developments highlight the challenges facing the company amid the workers' strike and the ongoing revenue shortfall.