Postal showdown disrupts Canadian businesses

A national postal strike is underway after the Canadian Union of Postal Workers (CUPW) walked off the job on Sept. 25, following the federal government’s announcement of sweeping reforms to Canada Post.

Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, announced the government would adopt the recommendations of William Kaplan’s Industrial Inquiry Commission report, including converting four million addresses to community mailboxes, lifting the rural moratorium on post office closures, relaxing delivery standards, and allowing more frequent stamp-rate hikes.

The government said the changes are necessary to modernize operations and stem billions in losses at the Crown corporation, which has posted more than $5 billion in red ink since 2018, including a $1-billion loss last year alone. Canada Post said it was “disappointed” CUPW escalated strike action, warning the disruption would worsen its fragile financial situation.

For Canadians, the immediate effect is halted mail delivery. Canada Post confirmed all mail and parcels will not be processed or delivered during the strike, with some post offices closed and service guarantees suspended. Items already in the system will be secured and delivered once operations resume, though processing delays are expected to continue long after a settlement. The corporation said it will continue delivering socio-economic cheques and honour existing shipments of live animals, though no new live shipments will be accepted.

CUPW, however, called the government’s announcement “an outrage,” saying the reforms will gut postal services, undermine confidence in delivery, and trigger job losses. In a statement, National President Jan Simpson said the union was blindsided by the move, describing it as “an insult to the public and to postal workers.” CUPW argues the government rejected alternatives such as diversifying revenue streams, choosing instead to impose service cuts. “We cannot accept this attack on good jobs and public services,” Simpson said, pledging members will “fight back” through strike action.

The walkout marks the second major national disruption in less than 10 months, raising concerns across the business community. Dealers, collectors, and publishers in the philatelic and numismatic fields – sectors deeply reliant on the postal system – warn the strike will disrupt sales, delay shipments, and undermine confidence at a time when businesses are already facing cross-border challenges. Since Aug. 29, Canadian dealers have also been hit by the U.S. government’s elimination of the de minimis exemption, which has sharply reduced international sales.

With both sides entrenched, observers warn the dispute could be prolonged, affecting millions of Canadians and businesses across the country.

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