Ottawa, Canada – A potential work stoppage looms at Canada Post as negotiations between the postal service adn the Canadian Union of Postal workers (CUPW) stall, raising concerns about mail delivery across the country.
The dispute comes as Canada Post faces a deepening financial crisis. A 2024 review commissioned by the federal government found the postal service to be “effectively insolvent, or bankrupt,” citing declining revenues across all three primary areas: letter mail, direct-marketing mail, and parcel delivery.
Letter volumes have plummeted from 5.5 billion in 2004 to 2.2 billion in 2023. Simultaneously, Canada Post’s share of the parcel delivery market has shrunk dramatically, falling from 62% in 2019 to just 24% currently, due to increased competition from private courier services.
Financially, the situation is dire. Canada Post reported a loss of C$1 billion in 2023 and is projected to lose C$1.5 billion this year, with a second-quarter loss of $407 million. The federal government provided a C$1 billion loan in January to keep the service operating.
CUPW has proposed diversifying revenue streams, suggesting Canada Post explore offering banking and insurance services, as well as expanding into providing passport and other government services. Though, a review of Canada Post indicated these markets are already “well served.”
Canada Post management has stated a need to focus on core services, including a potential expansion of parcel delivery to seven days a week.
This is not the first attempt at postal service reform. A previous Conservative government initiative to end door-to-door deliveries was paused in 2015 when Justin Trudeau became Prime Minister following public opposition.
