Canadians were taken aback on Thursday afternoon when the union representing Canada’s postal workers abruptly called for a nationwide strike. This move followed the federal government’s announcement of significant reforms to Canada Post, directing the Crown corporation to cease home delivery and shutter some rural mail outlets.
Canada Post reported a pre-tax loss of $448 million in the first half of 2025, following a $30 million loss in the same period of 2024. Despite a $1 billion infusion from the federal government earlier in the year to sustain operations, the corporation is still losing approximately $10 million per day, according to Public Works and Procurement Minister Joël Lightbound.
While Canada Post embraced the changes, the Canadian Union of Postal Workers expressed outrage, declaring all members at Canada Post on a nation-wide strike in response to what they perceived as an attack on the postal service and its workers by the government.
The strike has already begun, with postal workers engaging in various actions since May, such as an overtime ban and work-to-rule campaigns. Negotiator Jim Gallant confirmed workers were organizing picket lines, with the expectation that all workers would be fully on strike again by Friday.
The union, representing 55,000 postal workers, was caught off-guard by the government’s reforms, contending that Canada Post and the government were contributing to declining demand for postal services. Contract talks between Canada Post workers and the corporation have been ongoing for almost two years, focusing on issues like wages and part-time workers amid substantial financial losses.
During the strike, Canada Post announced that no mail or parcels would be processed or delivered, suspending service guarantees for items already in transit. Mail and parcels within the postal network will be secured and delivered promptly once operations resume, with exceptions for government benefit cheques and live animals.
The government’s reforms empower Canada Post to end home delivery, converting addresses to community mailboxes, a move expected to save nearly $400 million annually. The transition is projected to take close to a decade, with a plan due within 45 days outlining the implementation of these changes.