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Canada Post Faces Financial Crisis and Potential Strike as Key Deadline Nears

With a May 22 deadline looming, Canada Post halts negotiations to draft new proposals while a report declares the Crown corporation 'effectively insolvent.'

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A Canada Post worker fills his truck with mail in Montreal on Tuesday, Dec.17, 2024.
A Canada Post truck is seen in Montreal on Dec. 17, 2024.
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Overview

  • The Industrial Inquiry Commission report concludes Canada Post is 'effectively insolvent,' citing declining letter mail volumes and mounting competition in parcel delivery.
  • The report recommends phasing out daily door-to-door delivery for individual addresses, maintaining daily service for businesses, and lifting moratoriums on rural post office closures.
  • Canada Post paused negotiations with the Canadian Union of Postal Workers (CUPW) to develop comprehensive proposals, a move criticized by the union as a stalling tactic.
  • Small businesses and alternative carriers brace for disruptions as the back-to-work order expires on May 22, potentially triggering a strike or lockout.
  • The report's recommendations include allowing flexible part-time roles under collective agreements, aiming to address financial challenges and sustain universal service obligations.