The Canada Post overtime ban is now in effect, with 55,000 workers instructed to refuse extra hours. The Canadian Union of Postal Workers (CUPW) called it a “legal strike action” and confirmed members would reject work beyond eight hours per day and 40 hours per week.
The union said the move aims to apply pressure without causing major public disruption. Meanwhile, Canada Post issued a statement Friday morning. It confirmed there are no rotating strikes or national walkouts but warned customers of possible service delays.
This step came just as CUPW entered a legal strike position at midnight. A last-minute meeting between the two sides on Thursday night failed to resolve key issues.
“The meeting lasted less than half an hour,” said Canada Post spokesperson Lisa Liu. “CUPW raised only a few issues informally. That wasn’t enough to show progress.” She said the company urged CUPW to respond quickly to the latest offer.
CUPW claims the proposals fall short, especially after years of high inflation. The union is seeking a 19% wage increase and pushing back against a plan to expand part-time weekend work.
The union said Canada Post wants to boost part-time positions in cities by 20%. Some workers could end up logging 30 hours a week without full-time benefits.
Canada Post said flexible weekend staffing is necessary. With parcel demand rising, the company wants to avoid paying full-time staff overtime for Saturday and Sunday shifts.
A federally commissioned report last week added fuel to the debate. Arbitrator William Kaplan, who authored the report, described Canada Post as “effectively bankrupt.” He recommended a shift toward parcel delivery, rural post office closures, and replacing door-to-door mail service for households with community boxes.
Kaplan also proposed adding part-time roles with full compensation but warned against gig-style jobs without benefits. He emphasized the need to fix Canada Post’s outdated business model.
On Wednesday, CUPW had asked for a two-week “truce” to review the latest contract terms. Canada Post rejected the idea. In response, the union went ahead with the overtime ban.
“Additional actions may take place in the future,” CUPW said.
A full strike would bring major disruptions. Canada Post delivers 8.5 million letters and 1.1 million parcels daily. A shutdown would worsen its already steep financial losses.
The company posted an $803 million operating loss in the first nine months of 2024. It has lost $3.8 billion since 2018. In January, it received a $1.03 billion federal loan to stay afloat.
A strike would also mark the second work stoppage in under a year. The previous one hit millions of households and small businesses. According to the Canadian Federation of Independent Business, it caused $1.6 billion in losses.
As negotiations continue, both sides face pressure to avoid further disruption and financial fallout.
