Canada Post is warning of delivery delays after the postal workers union implemented a national overtime ban — though a broader strike was narrowly avoided. Despite the limited nature of the current job action, the bigger concern now is long-term damage to customer confidence and financial losses at the already struggling Crown corporation.
Late Thursday, the Canadian Union of Postal Workers ordered its members to refuse work beyond eight hours a day or 40 hours a week, as contract negotiations continue. While mail volumes are currently low enough to absorb the overtime cut, experts say the reputational harm could be far worse.
Ian Lee of Carleton University notes that with fewer letters and parcels in circulation, “there’s very little overtime.” But the cumulative effect of the strike threat, a month-long walkout during the last holiday season, and a growing shift to digital communications has been bleeding Canada Post’s business dry.
The postal service reported over $3.8 billion in losses from 2018 through September 2024, plus a recent $1-billion federal loan. And the hit continues: its share of the parcel market has dropped to 29 percent from 62 percent pre-pandemic, as competitors like Amazon and Intelcom attract once-loyal shippers.
Some businesses are already urging customers to switch to paperless billing, while others are in talks with private couriers to avoid future disruptions. A recent report declared Canada Post “effectively bankrupt,” calling for sweeping reforms including weekend part-time workers, post office closures, and flexible delivery routes to adapt to declining mail volumes.