With Canada Post workers on strike, business groups warn of massive financial losses and call for urgent government action to protect essential services.
Business organizations across Canada are raising urgent concerns as the Canada Post strike takes effect, warning that the disruption could have far-reaching economic consequences.
Dan Kelly, President of the Canadian Federation of Independent Business (CFIB), said the impact on small business will be massive.
“Last year's strike alone cost small firms over $1 billion. Doing this in the lead-up to the critical holiday retail shipping season is especially troubling.”
Kelly emphasized that small businesses, which are still strong users of Canada Post, are particularly vulnerable at this time of year. He called on the federal government to move forward with reforms and to introduce essential services legislation to ensure that postal services continue during periods of labour unrest.
“Canada needs some form of temporary or permanent Essential Services legislation to ensure service continues while the reforms are going into effect. Small firms are counting on government and all political parties to make this happen,” he said.
‘Another strike is not welcome news’
The Canadian Chamber of Commerce echoed these concerns, pointing to the broader implications for the national economy.
“Canadians are counting on Canada Post to deliver and, following years of repeated supply chain disruptions, another strike is not welcome news,” Pascal Chan, Vice President of Strategic Policy and Supply Chains at the Chamber, stated.
The Chamber called for a swift return to the bargaining table and urged all parties to engage in good faith negotiations, with a focus on supporting both consumers and businesses.
The Chamber, representing over 200,000 businesses of all sizes, underscored that reliable postal services are essential for commerce and economic stability, especially in the wake of recent supply chain challenges.
Nationwide shutdown, delays, says Canada Post
Canada Post has confirmed that the strike by the Canadian Union of Postal Workers (CUPW) will result in a complete halt to mail and parcel processing and delivery across the country.
“Mail and parcels will not be processed or delivered for the duration of the national strike, and some post offices will be closed. Service guarantees are suspended for items already in the postal network,” the corporation stated.
Customers have been notified that all scheduled pickups are cancelled, and no new items will be accepted until the disruption is resolved. Canada Post also warned that the effects of the strike will linger even after it ends, with processing and delivery expected to take time to return to normal.
“A national strike of any length will impact service to Canadians well after the strike activity ends,” it cautioned, noting that millions of Canadians and businesses will be affected.
The corporation acknowledged the significant impact on businesses and committed to providing timely updates to help customers make informed decisions.
Union voices opposition to postal reforms
The Canadian Union of Postal Workers (CUPW) says plans to “gut” Canada Post as part of “decisive action” promised by Ottawa are far from the truth.
They said the government’s announcement “was a direct assault on our public post office, the public’s right to participate in political processes, and good, unionized jobs across the country.”
The union called the recent strike after last week’s announcement by Joël Lightbound, Minister of Government Transformation, Public Works and Procurement.
He outlined a stark reality: since 2018, Canada Post has accumulated more than $5 billion in losses. In 2024 alone, the corporation lost over $1 billion, and it is already on track to lose nearly $1.5 billion in 2025. Despite a $1-billion federal injection earlier this year, Canada Post posted its worst-ever quarterly results in the second quarter of 2025, losing $407 million. The corporation is currently losing about $10 million every day.
Twenty years ago, Canada Post delivered 5.5 billion letters annually; today, it delivers only 2 billion, despite a growing number of households, said Lightbound. Meanwhile, parcel volumes — once seen as a growth opportunity — have also dropped, with Canada Post’s market share falling from 62% in 2019 to below 24% today.
“Structural challenges, combined with outdated restrictions and stalled negotiations between labour and management, have further limited the corporation’s ability to adapt,” he said.
Declaring the situation “unsustainable,” the minister announced a series of measures aimed at stabilizing Canada Post’s finances and enabling modernization, building on recommendations from the Industrial Inquiry Commission led by William Kaplan:
- Letter Mail Delivery Standards: Canada Post will introduce new flexibilities, such as moving non-urgent mail by ground instead of air, saving more than $20 million annually.
- Community Mailbox Conversions: The government will lift the moratorium on converting door-to-door delivery to community mailboxes. With three-quarters of Canadians already using community, apartment, or rural mailboxes, converting the remaining 4 million addresses is expected to generate nearly $400 million in annual savings.
- Postal Network Modernization: The long-standing moratorium on rural post office closures, in place since 1994, will be lifted. Canada Post will be required to return with a plan to modernize and right-size its network, reflecting changes in Canadian demographics and geography.
- Stamp Rate Review: The process for increasing stamp rates will be modernized and shortened, in line with commission recommendations.
“These measures will help place the corporation on a stronger financial footing and provide the flexibility it needs to adapt to a rapidly changing environment,” Lightbound said.
CUPW is calling on the federal government to put an immediate stop to all service cuts to Canada Post and allow public consultations before implementing any changes to Canada Post’s mandate.
