Canada postal workers strikes
Postal workers in Canada have gone on strike after the government warned of an “existential crisis” and ordered sweeping changes to the national service – including an end to door-to-door delivery within the decade.
The union representing Canada Post employees described the proposed changes as “an attack” on its workers who have struggled to compete with a surge in private courier services.
The strike, announced by the union late on Thursday, marks the second time in the last 12 months that the country’s postal services have ground to a halt. Mail and parcels will not be processed or delivered for the duration of the strike and no new items will be accepted.
“Canada Post’s operations will shut down during a national strike, affecting millions of Canadians and businesses across the country,” the mail service said.
Joël Lightbound, the public works minister, said Canada Post has become “effectively insolvent”, even after lending the postal service C$1bn, adding that repeated financial bailouts were not a long-term solution for an organization that has lost more than $4bn since 2018. In its most recent quarter, Canada Post recorded its highest-ever quarterly loss of $407m.
“It provides an essential service to Canadians, and in particular to rural, remote and Indigenous communities, and Canadians are rightfully attached to it and want it saved,” said Lightbound, adding that the postal service “is now facing an existential crisis”.
In an attempt to blunt the losses, the Canadian government, Canada Post’s only shareholder, ordered an end to end door-to-door delivery of mail and to shutter a number of post officers. The crown corporation has been given 45 days to implement a restructuring plan.
The union said it was “outraged and appalled” by the minister’s comments.
“Throughout this time, Canada Post has done everything in its power to avoid real bargaining and has repeatedly relied on government intervention. Today is just another example.”
Protracted negotiations between the union and the postal service have gone on for more than 20 months, with no clear deal in sight.
The postal service has struggled against the rise of courier services, which operate more frequently and at lower cost. Letter delivery, which peaked in 2006, has also slowed dramatically.
At issue is also an attempt to bring down labour costs and to shift delivery routes as the service moves away from the traditional fixed routes currently used by the service. Both have met opposition from the union, which worries the changes will reduce its full-time work force and rely more on temporary or part time workers.
Business groups warned a “massive” hit to small firms’ operations was coming ahead of the holiday season. The strike last November cost small business C$1 billion in lost sales.
Federal jobs minister Patty Hajdu, who faced criticism for the her role in abruptly ending a recent strike by Air Canada flight attendants, said federal mediators available to support the bargaining process. “I encourage both parties to continue working toward a fair resolution.”