Arjun Pillai
Daily Herald
On May 23, the Canadian Union of Postal Workers (CUPW) initiated a country-wide overtime ban as part of a legal strike.
The Union says the move is intended to pressure Canada Post without resorting to full work stoppage.
Starting at midnight on May 23, the overtime ban took effect for CUPW members in both rural and urban positions. These restrictions limit employees to regular hours only, with no additional shifts or extended routes to handle volume overflow. While Canada Post continues to operate, it warned customers they may experience service disruptions and stated it would provide updates if the strike escalates.
In a statement issued on May 22 following a short meeting between the two parties, Canada Post expressed disappointment with the lack of progress. The company emphasized that CUPW raised only a limited number of outstanding issues informally and did not directly address its recent “Global Offers.” These offers included wage increases and operational changes aimed at ensuring financial sustainability in a changing parcel delivery market.
The strike threat has already led to reduced volumes as customers preemptively shift to alternative delivery providers. Canada Post says it has lost over $3 billion since 2018 and expects further losses for 2024, despite recent federal approval for up to $1.03 billion in repayable funding to avoid insolvency.
In Prince Albert, the local business community is watching closely. Patty Hughes, CEO of the Prince Albert and District Chamber of Commerce, said that while no major concerns have surfaced yet regarding the overtime ban, past experiences suggest business may quickly pivot.
“We experienced this earlier the last time, when they went on strike,” Hughes said. “A lot of small businesses had to take a look at their supply chain and actually pivoted to other service providers.”
Hughes highlighted the importance of reliability in delivery services, warning that businesses may again seek alternatives to avoid disruption.
“You try to make sure you’re going to mitigate all the risks in order to deliver the best customer service,” she said.
According to Hughes, industries like retail and repair could be hit hardest, since they depend heavily on fast delivery of essential parts and supplies. Without predictable delivery windows, these businesses may face stalled operations and mounting costs.
The Chamber currently offers members access to discounted freight options and encourages businesses to explore alternatives proactively. Hughes also confirmed that the Chamber has contacted both Canada Post and their Member of Parliament during previous disruptions and plans to do so again.
Looking ahead, she expressed concern about the broader implications of ongoing postal instability.
“We (will) take a look at the financial viability of the postal system,” Hughes said. “I do think some changes have to be made, and there are some difficult decisions that lie ahead for sure.”
