The ongoing impasse between Canada Post and the Canadian Union of Postal Workers (CUPW) has entered a new phase as a parliamentary committee begins examining the state of the Crown corporation amid continued rotating strikes and stalled contract talks.
In a live televised address on Oct. 22, Prime Minister Mark Carney referred directly to the postal service’s financial struggles, saying, “When we saw Canada Post losing $10 million a day, we made responsible choices.”
The speech, delivered at the University of Ottawa before students and young Liberal staffers, was billed as a national address outlining the government’s rationale for upcoming spending cuts and what Carney called “generational investments.” His mention of Canada Post underscored Ottawa’s view that restructuring the postal service is part of a broader fiscal tightening effort.
This week, the Standing Committee on Government Operations and Estimates (OGGO) is launching hearings into “the situation at Canada Post.” The committee previously oversaw a broad review of the postal service in 2016 and an assessment of rural post offices in 2024.
CUPW, which represents roughly 60,000 postal workers, is slated to testify in the coming week. According to CUPW National President Jan Simpson, the union will argue that recent decisions by Minister Joël Lightbound have undermined collective bargaining and the future of the public postal system.
The union contends the government is moving forward with major changes “without public consultation” while negotiations remain unresolved. Lightbound is scheduled to appear before the committee alongside senior Public Works officials, followed by several external witnesses including academics and municipal representatives. CUPW says it will use its appearance to call for a reversal of what it describes as the Minister’s plan to “gut the public post office.”
In a series of recent statements, CUPW outlined concerns about what it calls “repeated government interference” in the bargaining process. On October 15, Simpson reported meeting with the Minister’s office to challenge Canada Post’s public narrative and emphasize that corporate and government actions have “pushed Canada Post further away from the negotiating table.”
A follow-up meeting on October 16 focused on the need for job security and stronger protections against contracting out work. CUPW also raised objections to Canada Post’s “non-negotiable” proposals – specifically, a dynamic routing system the union says was already tested and abandoned by management.
The union accused Canada Post of misleading the public about its finances and of using its subsidiary Purolator to divert business and weaken the corporation’s bargaining position. It also criticized the government’s 45-day deadline for a Canada Post “transformation plan,” arguing the process lacks transparency and consultation.
In response, Canada Post confirmed it is preparing a plan to implement measures requested by the Minister by the mid-November deadline. The corporation said its approach will be guided by five key principles: prioritizing service to ensure reliable and affordable delivery for all Canadians, including rural, remote and Indigenous communities; proceeding thoughtfully to minimize disruption; treating employees with respect and maintaining safety during the transition; keeping Canadians informed through regular updates; and being flexible to adapt to the evolving needs of Canadians.
Canada Post said it will release a series of informational videos to explain its initiatives, starting with one on its Delivery Accommodation Program.
With OGGO hearings underway and both sides defending sharply different visions for the postal service’s future, the next few weeks are expected to be pivotal. CUPW maintains that only a fair, transparent bargaining process can restore stability to the postal system, while Canada Post says it remains committed to transformation that balances public service, affordability and sustainability.