Canada Post Workers Initiate Nationwide Overtime Ban Amid Contract Dispute

As labor tensions escalate, the Canadian Union of Postal Workers (CUPW) has launched a nationwide overtime ban, impacting mail and parcel deliveries across Canada. While a full strike has not yet been declared, CUPW’s action comes in response to stalled contract negotiations with Canada Post, which has warned customers to expect delays. The union’s move follows the expiration of collective agreements on May 23, 2025, and ongoing disputes over wages, benefits, and working conditions.

The overtime ban, which began at midnight on May 24, restricts postal workers to eight-hour shifts and a 40-hour workweek. Canada Post has assured the public that operations will continue but acknowledged that service disruptions are likely. The company has already seen a sharp decline in mail and parcel volumes as businesses and individuals seek alternative delivery options.

Negotiations between CUPW and Canada Post have been fraught with disagreements over key issues, including worker pay, the use of temporary employees, weekend delivery, and pension benefits. Canada Post’s latest offer includes a 13.59% wage increase over four years, but CUPW has criticized the corporation’s refusal to grant additional time for reviewing the proposal.

Lisa Liu, spokesperson for Canada Post, stated: “We remain ready to receive a response to our global offers and hope to resume negotiations with CUPW as soon as possible.”

A CUPW representative countered: “Our members deserve fair wages and safe working conditions. Canada Post’s uncompromising stance is creating instability in these negotiations.”

Canada Post has faced financial struggles, reporting over $3 billion in losses since 2018. Earlier this year, the Government of Canada provided $1.034 billion in funding to prevent insolvency. The postal service has also seen a decline in letter mail volumes, while parcel deliveries remain a critical revenue stream.

The last major Canada Post strike occurred in late 2024, lasting five weeks before government intervention forced a return to work. The current labor dispute echoes past conflicts, with CUPW advocating for improved working conditions and Canada Post seeking cost-cutting measures to remain competitive.

Conclusion

While CUPW’s overtime ban has avoided an immediate strike, the situation remains volatile. If negotiations fail to progress, a nationwide work stoppage could follow, disrupting mail and parcel services across Canada. As both sides prepare for further talks, businesses and consumers are bracing for potential delays and uncertainty in postal operations.