Canada Post is experiencing even more problems. The Canadian Union of Postal Workers (CUPW) will be in a legal strike position this Friday.
Its executive board submitted the required 72-hour notice for both its rural and urban mail carrier bargaining units.
The strike notice arrived amidst the Crown corporation’s warnings that a potential strike will further amplify its unstable financial situation.
The CUPW began talks with the Crown corporation almost a year ago. Despite this, the parties haven’t settled on issues, such as wage increases, pensions and medical leave.
Over 95% of both urban and rural workers backed a strike mandate in a vote last month.
Recent statements by Canada Post express it’s at a “critical juncture”. It also states that its “deteriorating financial situation could require the company to revisit its proposals” (CBC).
Furthermore, labour disputes will negatively affect the company and strain customers during the busy holiday season, especially in rural communities (CBC).
This could lead to significant delays, late bills, and more costly shipping.
Ahead of the potential strike, retailers have already switched service providers, taking a slice out of the postal company’s revenue.
Canada Post loses billions
In a recent statement, Canada Post revealed that it lost $490 million in the first half of 2024, contributing to a total of $3 billion lost since 2018.
Additionally, in 2023, it lost $748 million before taxes due to a decrease in transaction mail, pricier delivery costs and a surge in competition with other parcel delivery services born out of the pandemic.
Therefore, the strike carries great weight as Canada Post is already so vulnerable.
CUPW president Jan Simpson stated that immediate job action is uncertain and “will depend on Canada Post’s actions at the bargaining table in the days to come” (CBC).
For more on this story, click here.
Click here for more stories like this.
Image source: Globe and Mail
