MONTREAL – Canada Post employees could be headed to the picket line in just over two weeks, with an extension on existing deals between the Crown corporation and the union expiring on May 22.
A strike or lockout would mark the second time in under six months that the postal service ground to a halt after 55,000 employees walked off the job for 32 days in November and December.
The union may have lost leverage now that the peak holiday season has passed, said Kwantlen Polytechnic University business instructor Ulrich Paschen.
“The bargaining position of the union is not stronger, but weaker, because the urgency of the holiday bump is not there,” he said.
Canada Post’s dire financial situation also means it may struggle to meet workers halfway on their contract demands, he said.
The two sides agreed to resume negotiations last week, supported by a mediator, after bargaining broke off in March.
A potential work stoppage would come at a tumultuous time in the shipping world, as shifting U.S. tariffs and economic angst throw repeated wrenches into the gears of the global supply chain.
Last year’s strike left millions of parcels and letters in limbo ahead of the winter holidays, leaving businesses and consumers scrambling to ship products until a ministerial directive prompted employees to go back on the job in mid-December.
“We know this ongoing uncertainty is challenging for your business. We had hoped new agreements would be reached by this point – and providing you with this certainty remains our priority,” Canada Post said in an update on negotiations last week.
The Canadian Union of Postal Workers called the latest round of talks “challenging.” It said wages, health and safety benefits, job security and pensions remain its focus.
A report by an industrial commission examining the state of the Crown corporation is due on May 15.
Convened by the labour minister and headed by veteran arbitrator William Kaplan, the inquiry aims to assess Canada Post’s financial situation, delivery model, workplace practices and ultimately its viability, all with an eye to the bargaining impasse.
This report by The Canadian Press was first published May 6, 2025.
