Canada Post Faces Viability Crisis as Workers Strike Over Cuts

The ongoing strike by Canada Post workers has raised significant concerns about the viability of the Crown Corporation, with Prime Minister Mark Carney stating that “significant changes” are necessary for the organization to survive. The strike, initiated by the Canadian Union of Postal Workers (CUPW) on March 14, 2024, resulted in a complete halt of mail services as workers protested proposed changes by the federal government.

During a press conference in London, Carney revealed alarming financial figures, stating that Canada Post is losing more than $10 million daily. “At the moment, Canada Post is not viable. They lose more than $10 million a day — $10,000,000 a day, day after day. The situation needs to change,” he emphasized. The government previously provided a $1 billion financial injection to keep the corporation operational, but challenges persist.

In its recent report for the second quarter of 2025, Canada Post announced a staggering loss of $407 million, prompting the government to suggest cost-saving measures. Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, unveiled proposals that include changing delivery standards for non-urgent mail to be transported by ground instead of air, converting four million addresses to community mailboxes, and lifting a moratorium on rural post offices.

CUPW President Jan Simpson condemned these measures, characterizing them as a “direct assault” on public postal services and the livelihoods of workers across Canada. The union asserts that the government failed to conduct necessary public consultations regarding these changes, leading to swift service cutbacks without community input. Simpson stated, “We can’t let them get away with it. That’s why we are calling on the Government to put an immediate stop to all service cuts to Canada Post.”

The current strike follows a protracted period of negotiations between CUPW and Canada Post, which have not yielded a satisfactory agreement. Marvin Ryder, a marketing and entrepreneurship professor at McMaster University, noted the gravity of the financial situation, suggesting that the government’s cost-cutting measures could potentially save Canada Post hundreds of millions of dollars. “Canada Post is bleeding cash at this point,” he remarked, indicating projected losses of at least $1.5 billion in 2025.

The union’s opposition to the proposed changes stems from concerns that reducing door-to-door delivery in favor of community mailboxes could adversely affect residents in remote areas. Many depend on Canada Post for affordable parcel deliveries, particularly small businesses that find the service more cost-effective than private couriers. CUPW warns that these adjustments may lead to increased travel distances for residents to collect their mail, negatively impacting property values and posing safety risks for seniors and individuals with mobility challenges.

CUPW National Director for the Pacific Region, Jennifer Savage, expressed frustration regarding the lack of viable solutions for workers, emphasizing the need for improvements in health and safety, benefits, and work conditions. “Members are angry and frustrated,” she stated. The union contends that Canada Post’s claims of financial distress are exaggerated and could be addressed through measures such as increasing stamp prices and reducing managerial salaries — options Lightbound mentioned he is also exploring.

As the strike continues, the future of Canada Post remains uncertain. The push for reform and cost-cutting measures will likely impact not only postal workers but also the broader community that relies on the services provided by this essential organization.