It’s high noon for Canada’s national postal service.
Driving the news: Canada Post workers began voting yesterday on their employer’s “final” offers for a new contract. If they accept the deal, it would mark the end of a labour dispute that’s been going on for over a year and a half. If they reject it, a strike could soon follow.
- The four-year deal would give a cumulative 13% wage increase for mail carriers plus signing bonuses up to $1,000, but also has measures to introduce more part-time workers.
- The union representing workers has urged them to reject the deal, arguing that the promised wage bump is inadequate and that new measures will erode job security.
Why it matters: Canada Post hasn’t turned a profit since 2017, and suffered a ~$1.3 billion operational loss in 2024. It might not be able to handle labour action in its current condition, with a new survey finding that 63% of small businesses would ditch the courier for good if another strike happened.
- Canada Post claimed that the 32-day strike over November and December last year contributed $208 million to its annual losses.
- The postal workers’ union has accused Canada Post of failing to take responsibility for its financial precarity and using its situation to undermine negotiations.
What’s next: Voting ends at 5 p.m. on August 1. We’ll let you know what happens.—QH