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Canada Post Workers Begin Nationwide Overtime Ban After Contract Talks Fail

The labor action by 50,000 postal workers may cause delivery delays as the union and Canada Post remain at an impasse over wages, part-time roles, and operational reforms.

A Canada Post delivery truck.
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Overview

  • The Canadian Union of Postal Workers (CUPW) initiated an overtime ban on May 23, 2025, after failing to reach agreements on new contracts for urban and rural postal workers.
  • Canada Post continues normal operations, but delivery delays are expected, with parcel volumes already down 1.3 million compared to the same period last year.
  • Key sticking points include CUPW's demand for a 19% wage increase over four years, while Canada Post has offered a 13% raise, new part-time weekend roles, and dynamic routing proposals.
  • An Industrial Inquiry Commission report recently declared Canada Post effectively insolvent, recommending rural post office closures, expanded community mailboxes, and other cost-cutting measures.
  • The ongoing labor dispute follows a 32-day strike in late 2024 and adds pressure on the financially struggling Crown corporation, which has incurred C$3.8 billion in operating losses since 2018.