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.