Canada Post narrowly avoided a strike after last-minute negotiations failed to produce "meaningful progress," the Crown corporation stated.

The Canadian Union of Postal Workers (CUPW) announced late last night that its members would begin refusing overtime work nationwide at midnight local time, as first reported by the Toronto Star.

"While this action does constitute a continuation of our strike activity, postal workers will remain on the job to minimize disruption to the public," the CUPW wrote the Star.

The CUPW accused Canada Post of negotiating in bad faith by publicly releasing contract details before presenting them to the union. Despite this, the union says they are ready to negotiate fair agreements for postal workers and communities.

Canada Post also faced accusations of intentionally creating fear about a potential disruption, driving customers to competitors like Purolator, of which it owns a 91% stake. The courier acknowledged ongoing operations but warned customers to expect slower service. 

Other courier companies, like FedEx, are preparing for a potential surge in demand due to a possible Canada Post strike. FedEx stated they hope for a resolution but have a contingency plan to maintain their service levels if demand increases.

Labour experts suggest the federal government might introduce back-to-work legislation sooner rather than later, if the workers do end up striking.

Federal intervention was required to end 32-day and 35-day Canada Post work stoppages in 2024 and 2018, respectively.

A four-year contract remains on the table for employees to consider, including new part-time carrier roles for weekend parcel delivery and "dynamic routing" at 10 sorting facilities, allowing for daily route adjustments based on volume.

Canada Post offered a 13% total wage increase for current employees (6% this fiscal year), which is higher than the previously rejected offer.

A brief and unproductive mediated meeting occurred Thursday evening between Canada Post and CUPW after a day of public criticism. It lasted less than 30 minutes with no comprehensive response to Wednesday's contract offer, hindering meaningful progress.

"We asked them to come back, with urgency, with a response to the Global Offers we presented to the union on May 21," Canada Post said. 

"Further delays or another strike would have a major impact on employees, small businesses and the millions of Canadians who rely on the postal system."

A recent mediator report emphasized the importance of preventing another strike, noting the corporation is effectively insolvent with half a billion dollars in annual losses, necessitating significant service reductions. 

Public Services and Procurement Canada announced a $1.034 billion loan in January to cover non-discretionary obligations through the 2025/26 fiscal year. The postal service has not been profitable since 2017.

It suggests community mailboxes, ending home delivery (except parcels), reducing post office locations by using franchises, and expanding parcel delivery to seven days a week with part-time staff.

The union slammed the findings, while the federal government has not commented. 

Without changes to its operating model, Canada Post forecasts larger, more unsustainable losses in future years. It delivered almost 5.5 billion letters in 2006, falling to roughly more than 2.2 billion in 2023

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