Striking Canada Post workers are jeopardising the future of the national postal operator’s parcel business by resisting modernisation plans aimed at restoring competitiveness, according to logistics experts, reports New York’s FreightWaves.
The Canadian government has ordered Canada Post to implement reforms including reduced delivery frequency, community mailboxes, and post office closures. The Canadian Union of Postal Workers (CUPW) launched a strike after 20 months of stalled negotiations, citing job loss concerns.
Canada Post said CUPW’s demands are unaffordable, estimating the cost of wage increases, benefits and other provisions at over US$2 billion annually. The strike could further erode shipper confidence and worsen financial losses.
Parcel expert Satish Jindel said workers risk losing well-paid jobs by resisting change. Canada Post’s parcel market share has dropped from 62 per cent in 2019 to below 24 per cent, with volumes falling 50 per cent year-on-year in May.
ePost Global’s Alison Layfield said the postal network is outdated and unsuitable for parcel delivery. Most e-commerce consolidators now use private carriers, though these cannot reach P.O. boxes or remote areas.
Companies like TForce Logistics, UniUni, Fleet Optics, Amazon’s Dragonfly and Purolator are expected to absorb diverted volumes. Printful warned customers of possible delays due to increased demand on alternative carriers.
The US Postal Service continues to accept mail for Canada but may suspend service if the strike persists. ePost Global advised customers to avoid sending perishables and use its Canadian carrier network.
Ms Layfield supported Canada Post’s plans for weekend delivery, part-time hiring and community boxes, but said employee cooperation is essential. Consultant Andre Pharand criticised community boxes as outdated and inadequate for parcel delivery.
CUPW said it is defending public service and workers’ rights, accusing Canada Post of mismanagement and diverting profitable parcel business to Purolator. Ms Layfield said Canada Post must rebuild trust to regain lost customers.
