Dive Brief:
- Canada Post workers represented by the Canadian Union of Postal Workers are on a nationwide strike in protest of an overhaul plan for the carrier by the country’s government.
- The government-owned carrier has halted its operations as a result of the work stoppage, which began Thursday. Parcels and mail won’t be processed or delivered until the strike ends, according to Canada Post.
- “Service guarantees are suspended for items already in the postal network,” Canada Post said in its announcement. “No new items will be accepted until the national disruption is over.”
Dive Insight:
The strike forces Canada Post shippers to once again scramble for alternative delivery options less than a year after a peak season work stoppage imposed by CUPW.
CUPW imposed the strike with immediate effect after Canada’s government announced a series of reforms to improve the carrier’s financial health aligning with an Industrial Inquiry Commission report from May. Planned actions include reducing door-to-door mail delivery in favor of community mailboxes and adjusting delivery standards to allow non-urgent mail to travel by ground instead of pricier air transportation.
"Government post restrictions and a stalled relationship between management and labor have hindered Canada Post's capacity to evolve," said Joël Lightbound, Canada's minister of government transformation, public works and procurement, adding that the carrier "is effectively insolvent."
While Canada Post welcomes the changes, the CUPW took a firm stance against it. The union said changes to delivery standards could affect mail volumes and confidence in Canada Post's service, adding that it has no information on how the overhaul will be implemented.
"We cannot accept this attack on good jobs and public services," CUPW National President Jan Simpson said Thursday. "Let’s now turn our efforts to making sure the Government and Canada Post hear us loud and clear. We have done it before. We will do it again."
CUPW’s relationship with Canada Post was already strained prior to Thursday’s strike launch. The union's members stopped delivering unaddressed direct mail last week in a bid to speed up lumbering labor contract negotiations. CUPW expected Canada Post to present new contract proposals Friday, but federal mediators informed the union that the carrier needs until next week to do so, Simpson said.
For shippers navigating Canada Post disruptions, experts have recommended using alternative delivery providers. Many businesses have heeded that call, with Canada Post's parcel volume plummeting 36.5% year over year in the second quarter as customers diverted packages to more stable options.
"We’re advising clients to review any volume currently routed through Canada Post, particularly shipments bound for PO boxes or rural addresses where alternatives are limited," Alison Layfield, VP of product development at ePost Global, said in an email. "In this moment, flexibility is key -- whether that’s working with multiple carriers, adjusting delivery promises, or prompting customers for updated address information."
Canada Post said Thursday that even after the strike ends, it will take time for processing and delivery operations to return to normal.
