Canada Post Faces Viability Crisis as Workers Strike for Change

Prime Minister Mark Carney announced that Canada Post operations are currently not “viable” following renewed strike action by postal workers. The Canadian Union of Postal Workers (CUPW) initiated a walkout on March 15, 2024, resulting in a complete halt of mail services. This strike was prompted by proposed changes from the federal government aimed at addressing significant financial losses within the Crown Corporation.

During a press conference in London, Carney highlighted the dire financial state of Canada Post, stating that the organization is losing more than $10 million daily. He emphasized the urgent need for “significant changes” to ensure the corporation can remain operational. “At the moment, Canada Post is not viable. They lose more than $10 million a day — $10,000,000 a day, day after day. The situation needs to change,” he remarked.

In an effort to stabilize the postal service, the federal government previously provided a $1 billion financial injection to support operations. Despite this, Canada Post reported a staggering loss of $407 million in the second quarter of 2025. The government’s proposed cost-saving measures, announced by Joël Lightbound, the Minister of Government Transformation, Public Works and Procurement, include plans to alter service standards. These adjustments would allow non-urgent mail to be transported by ground rather than air, convert four million addresses to community mailboxes, and lift a long-standing moratorium on rural post offices.

The CUPW has reacted strongly against these proposed changes. In a statement, Jan Simpson, national president of CUPW, described Lightbound’s announcement as “a direct assault on our public post office, the public’s right to participate in political processes, and good, unionized jobs across the country.” The union asserts that the government has not fulfilled its promise to conduct necessary public consultations regarding the postal service review. Simpson added, “With no warning and no chance for public input, the Government has announced sweeping service cutbacks. We can’t let them get away with it.”

The strike action follows a year of negotiations between the CUPW and Canada Post that have thus far failed to yield an agreement. Marvin Ryder, a marketing and entrepreneurship professor at McMaster University, informed Global News that the government’s cost-cutting measures could potentially save Canada Post hundreds of millions of dollars, despite not fully balancing its books. Ryder stated, “Canada Post is bleeding cash at this point. It’s looking like it’s going to lose at least one and a half billion in 2025… These changes don’t get the books balanced, but could mean five- to six-hundred-million dollars in savings.”

The CUPW has expressed concerns that the government’s measures will lead to workforce downsizing. They have been given 45 days to implement a plan, which has led to heightened tensions within the union. Many small businesses rely on Canada Post for parcel deliveries due to its cost-effectiveness compared to private couriers. The union fears that transitioning to community mailboxes could hinder access for residents in remote areas, potentially lowering property values and posing safety risks for seniors and individuals with mobility issues.

CUPW national director for the Pacific Region, Jennifer Savage, criticized Canada Post for failing to propose a viable solution that prioritizes the health and safety of its workers. She stated, “Members are angry and frustrated.” The union argues that Canada Post’s financial troubles are exaggerated and could be alleviated by increasing stamp rates and reducing management salaries—a move that Lightbound also indicated he supports.

As negotiations continue amidst these developments, the future of Canada Post hangs in the balance, reliant on both government intervention and the resolution of ongoing labor disputes. The situation remains fluid, and the outcomes will significantly impact postal services across Canada.