Canadians were taken aback late Thursday when the union representing Canadian postal workers suddenly initiated a nationwide strike. This action followed the federal government’s announcement of significant reforms to Canada Post, directing the Crown corporation to cease home delivery and shut down certain rural mail outlets. The financial status of Canada Post has been concerning, with a loss of $448 million before tax in the first half of 2025, compared to a $30 million loss in the same period of 2024.
Despite a $1-billion injection from the federal government earlier in the year to sustain operations, Public Works and Procurement Minister Joël Lightbound revealed that Canada Post is losing approximately $10 million per day. While Canada Post welcomed the proposed changes, the Canadian Union of Postal Workers expressed outrage, leading to all Canada Post members walking off the job, as confirmed in a statement on their website.
The strike has already commenced, with workers engaging in various strike-related actions since May. The union anticipates a full strike by Friday. The union cited the government’s changes and the downward demand for postal services as key reasons for the strike. The absence of a collective agreement, ongoing contract talks focusing on wages and part-time employment, and substantial financial losses at Canada Post have further fueled the discord.
During the strike, Canada Post announced that no mail or parcels will be processed or delivered, with service guarantees suspended. The delivery of government benefit cheques and live animals will continue. The backlog from the previous holiday season’s strike remains a concern for the postal service.
One of the major changes proposed by Minister Lightbound is the potential end of home delivery, affecting approximately four million addresses. The transition to community mailboxes is estimated to save nearly $400 million annually and is expected to take close to a decade to complete, although some changes may occur sooner.
In response to the strike, Canada Post expressed disappointment over the escalation of strike activity. The situation remains fluid, with the impact on mail delivery and postal services being closely monitored.