Another Canada Post strike or work stoppage could start as soon as next week and Canadian business owners say they’re worried about tough times ahead.
The Canadian Union of Postal Workers and Canada Post appear to be unable to find common ground in negotiations with one week left to the deadline to avoid a work stoppage, and as the Canadian economy tries to navigate through a challenging trade war with the United States.
The deadline to reach an agreement is May 22, which is the earliest workers could walk off the job.
Here’s what to know.
Where do things stand between Canada Post and unionized workers?
The current talks between Canada Post and the Canadian Union of Postal Workers (CUPW) are in the second week and follow a failed attempt in March to reach an agreement.
A federal mediator has also been helping during these negotiations.
On Tuesday night, Canada Post issued a statement saying it was taking a “temporary pause” in the negotiations to update its “comprehensive proposals.”
According to the CUPW, Canada Post did not provide the union with a timeline for when it will return to the bargaining table with its latest offers.
The union said the Crown corporation’s decision to pause discussions was “reprehensible.”
Canada Post says it “is committed to the bargaining process.”
“While our top priority remains reaching new collective agreements at the table that will help us serve the changing needs of Canadians while providing good jobs, we’re preparing for a number of potential outcomes, including the possibility of a labour disruption on or after May 22,” a statement on Tuesday said. “We will continue to keep customers and the public updated.”
How did negotiations get to this point?
The November 2024 labour disruption lasted 32 days through to Dec. 17, when the federal government intervened and ordered an end to the work stoppage.
A statement from the union at the time said: “We denounce in the strongest terms this assault on our constitutionally protected right to free and fair collective bargain and our right to strike.”
With both sides unable to reach a deal, the matter was referred to an Industrial Inquiry Commission and the collective agreement was extended to May 22, 2025.
At issue between the union and Crown corporation are key demands around worker pay, the use of temporary workers, weekend delivery, benefits and pensions, and how Canada Post could meet a “critical financial situation” that experts have said could go “the route of Blockbuster.”
Among the demands, Canada Post’s unionized full-time workers are seeking better flexibility to work on weekends as the company pushes for parcel delivery seven days a week to better compete with the likes of Amazon, UPS, Purolator, FedEx and other companies.
Last year, Canada Post reported it lost $315 million in the three-month period leading into the strike in November.
The company referred to the loss in its report as the result of the “highly competitive and demanding parcel delivery market.”
The Industrial Inquiry Commission is expected to provide an update on Thursday — one week before the strike deadline.
The report will provide recommendations to the government and will include the potential next steps to help avoid or end another strike.
How could a strike impact Canadians and business owners?
The strike last year led to various disruptions for Canadians, including delayed bill payments, passport deliveries and gifts that may have been delayed during the busy holiday season.
Even charities reported a drop in donations tied to the strike.
Canada businesses are now especially vulnerable to a strike given economic pressures from the trade war and a surge in Buy Canadian consumer trends.
“While we’re managing this growth and riding this wave of Canadian support and really ramping up our business, we get a call from our Canada Post rep saying that there’s a 99 per cent chance of a strike that’s going to happen on May 22,” says Connor Curran, CEO at Calgary-based apparel brand Local Laundry.
“So when we hear that, we just get flashbacks, you know, PTSD from this time last year, Christmas when the last strike went on.“
There are also concerns a Canada Post strike could lead to job losses.
Patrick Masset, CEO of AIIM marketing and communications, said he is “very concerned” about the potential impact, and that Canada Post “directly affects our productivity, campaign performance and client trust.”
“The minute the strike is announced, we’ll unfortunately have layoffs,” says Masset.
“It’s millions of pieces of mail that will not move at all or move on a slow down basis until the system comes back from a potential work stoppage.”
Masset adds that even when the potential strike ends, there will be a period after to play catch-up.
“So it’s not just the duration of the strike, it’s also the recovery, and the recovery last time took almost three weeks,” he said.
What should you do?
During last year’s strike, most post offices and sorting centres were closed, and only some critical deliveries were being made, including those for the Canada Child Benefit, Old Age Security and the Canada Pension Plan.
However, the same scenario can’t be guaranteed at this point for future work stoppages.
Many Canadians that rely on physical deliveries need to be prepared for delays and Masset says being proactive is critical if a strike does occur.
“It’s about being prepared. Whether it’s invoices, medications, or legal documents, think ahead, because delays will affect everyone. A little planning now can go a long way.”