Canada Post employees will continue working but refuse overtime after contract talks between the Crown corporation and the Canadian Union of Postal Workers (CUPW) failed to produce a deal. CUPW announced on Thursday that its members would stop overtime work starting at midnight local time nationwide, avoiding a full strike while negotiations stalled.CUPW stated that the overtime ban aims to “minimize disruptions to the public and lost days for members.” Canada Post and union representatives met with a mediator on Thursday evening but made little progress. A Canada Post spokesperson called the 30 minute discussion insufficient for “meaningful progress,” adding that some customers have already switched delivery services fearing delays. .Tensions escalated this week after CUPW issued a strike notice on May 19, warning of a potential walkout when the current contract expired at 12:01 am Friday. Canada Post countered with a new offer on May 21, but rejected the union’s request for a two week pause to review it. Key disputes include wages, benefits, and weekend delivery staffing. The union wants a 19% wage increase over four years, while Canada Post proposed 13.59%. Weekend operations remain a major issue as the corporation wants part-time workers for deliveries, but CUPW insists on full-time roles, accusing Canada Post of pushing a “gig-style” model. .Last year’s 32 day strike during the holiday season caused widespread delivery delays. The federal labour board eventually ordered employees back to work. Canada Post, which has reported over $3 billion in losses since 2018, received a $1.03 billion government loan in January to stay operational. It warns that another $1 billion annually will be needed starting in 2026. In 2023, Canada Post handled 8.5 million letters and 1.1 million parcels daily on average, which is roughly 29% of the parcel market. The union represents more than 55,000 workers, whose actions could again disrupt services if negotiations continue at a stalemate.
