As the clock hit 12:01 am on November 15, 2024, approximately 55,000 postal workers represented by the Canadian Union of Postal Workers (CUPW) launched a nationwide strike. Their key demands included a 24 per cent wage increase over four years to match inflation, enhanced pension plans, and improved working conditions.

The strike came during a challenging financial period for Canada Post, the Crown corporation responsible for postal service. 

Strapped for cash

Canada Post is grappling with significant financial strain, having accumulated approximately three billion dollars in losses since 2018. The Crown corporation reported a $748 million loss in 2023, with an additional $315 million deficit in the most recent quarter. Due to financial difficulties, a dispute arose between management and employees.

Management has labelled the current business model as “unsustainable” and responded to CUPW by laying off workers in order to employ less costly part-time employees. Conversely, the CUPW attributes the financial strain to past investment decisions, arguing that Canada Post over-invested to meet a temporary surge in parcel delivery demand. This, they claim, has hindered the company’s ability to maintain business relationships with key partners such as Amazon.

Strike & gig economy 

CUPW’s strike had immediate and widespread effects, halting mail and parcel deliveries across Canada during the busy holiday season. Businesses, particularly small enterprises reliant on e-commerce, suffered significant financial losses due to undelivered orders. Meanwhile, people in remote and rural areas experienced delays in receiving essential items such as medications and government documents. Essential items, such as passports — over 180,000 of which were delayed — left many holidaymakers anxious during the disruptions.

The strike underscored the vital role of postal services in Canada’s economy and daily life, sparking national debates on labour rights, economic equity, and the sustainability of postal operations. Additionally, it highlighted Canada Post’s increased reliance on part-time workers within the ‘gig’ economy, who are temporary workers without fixed long-term contracts.

According to Statistics Canada, 871,000 people held jobs consistent with characteristics of the gig economy, while another 1.5 million engaged in gig work from October to December 2022.

This trend is largely driven by low-cost private companies hiring delivery workers as “independent contractors.” By classifying workers this way, companies can bypass regulations such as overtime pay and work-hour rules, which determine the maximum number of hours employees can work per week. Moreover, these workers face greater challenges in unionizing, often left with limited protections and bargaining power. 

Beyond this issue, the rise of alternative delivery options like Amazon and FedEx has further weakened the leverage of Canada Post workers. In the e-commerce sector, Canada Post’s market share plummeted from 62 per cent in 2019 to just 29 per cent by 2023. This decline underscores the erosion of Canada Post’s once-dominant position and some of the factors contributing to its financial losses. 

The strike itself added to these challenges, costing Canada Post an estimated 76 million in damages for each business day. 

Temporary fix

Following the start of the strike, Canada Post implemented contingency measures to maintain operations, but disruptions, particularly in rural areas, continued to escalate. Government-led mediation efforts on November 25 failed to bridge the divide, with CUPW rejecting Canada Post’s wage offer of 11.97 per cent over four years. A few days later, Canada Post began temporarily laying off workers on strike.

On December 9, Canada Post announced that it had received the latest proposals from the CUPW. The corporation was “extremely disappointed,” stating that the union’s actions “appears to be to widen the gap in negotiations, rather than close it.” Canada Post was frustrated by the union’s adjusted wage demand, which decreased from 24 per cent to 19 per cent over four years. 

At this point in negotiations, the union expressed frustration with Canada Post’s proposals, although Canada Post countered that they had not received a formal response.

Shortly afterward, Labour Minister Steven MacKinnon announced that the dispute would be referred to the Canada Industrial Relations Board (CIRB). If the board determines that an agreement is unlikely by the end of 2024, it could mandate the nearly 55,000 workers to return to work under their current contract, effective until May 22.

By December 15, CIRB declared the negotiations to be at a stalemate and mandated a return to work by December 17.

On December 17, Canada Post announced that it had agreed with the CUPW to implement a five per cent wage increase, retroactive to the day after the collective agreements expired on December 31, 2023 and January 31, 2024. This agreement ended the strike and workers resumed regular service. The arrangement will remain in effect until May 22.