Canada Post Strike Impact on Mail Delivery and How Businesses Can Avoid Delays
Are you wondering why your mail to Canada is delivering with so much delay?
Are you finding that your Canadian customers are not responding to your time-sensitive direct mail campaigns? We have the answers to all these questions.
The Canadian Union of Postal Workers (CUPW) and Canada Post are going through a conflict. It is regarding the postal worker’s current situation. Such is the seriousness of the problem that it led to a strike that began on November 15, 2024. Over 55,000 didn’t show up for work. Canada Post had to pause its services.
If you are thinking about what led to the strike and what effects it had, then you are at the right place. In the blog, aside from the things mentioned above, you will learn about the difficulties that businesses relying on direct mail might face. We will also cover some tips to follow in case this happens again.
Reason Behind the Canadian Mail Strike
The CUPW has a list of demands, which includes improvements in group benefits and an increase in wages in accordance with inflation. It also includes protection from changes in the workplace due to technological advancements. CUPW gave Canada Post sufficient time to decide how it wanted to proceed. However, the involved parties could not come to an agreement. This led to the Canadian mail strike. The national postal service provider had to pause domestic and international mailing services.
The Canada Industrial Relations Board asked the postal workers to resume work on December 17, 2024, at 8:00 a.m. Steve MacKinnon, the labor minister, requested an extension for the collective agreement. As per the latest update, the terms will expire on May 22, 2025. The Industrial Inquiry Commission will review the structural issues of the labor dispute and provide a report on May 15, 2025.
What is the Update on the Industrial Inquiry Commission (ICC) and Negotiations With CUPW?
The ICC was holding hearings in January and February, which have now wrapped up. The Commissioner will present the report and recommendations to resolve the conflict to the Ministry of Labor on May 15, 2025.
The ICC predicts that there might be a labor disruption once the collective agreement expires on May 22, 2025. It is advised that businesses relying on mail stay up-to-date on updates to navigate their operations according to the changes.
Impact of the Canadian Mail Strike
In the Country
Canada Post did not process or deliver any mail or packages while the strike was active. Some post offices were closed entirely, and the national postal service provider did not accept any new mail during this period. Millions of items, such as utility bills, business licenses, and government notices, faced delays. Thousands of social assistance checks in British Columbia were left undelivered.
On a Global Scale
On November 29, Canada Post requested that internal mail service providers, such as USPS and Royal Mail, halt any mail destined for Canada. Complying with this, they suspended all mail classes, including express services, to the country. Since the strike occurred before the holiday season, businesses that relied on the mail faced significant delays. To prevent losses, many prominent mailing solutions paused their services.
Impact on Industries
Over 73% of small businesses reported a negative impact on revenue due to increased costs, lost orders, and delayed payments. Ecommerce was one of the industries severely hit by the disruption. The pause on shipping increased customer dissatisfaction, which forced them to switch to alternative methods.
How Did it Affect Businesses Relying on Direct Mail?
Poor Customer Experience
The strike took place during a peak shopping period, with several holidays approaching. However, due to the Canadian postal service strike, retail and ecommerce companies had to deal with unhappy customers. The number of refunds and cancelled items might have increased.
Additionally, an increasing number of customers might have left negative reviews. This would have increased the burden on the customer service team. The direct mail sent during this period might not have generated the desired response. This is because the mail arrived after the campaign’s window had closed.
Issues in Maintaining Compliance
Businesses involved in healthcare, banking, and insurance must send documents in a compliant manner. They have to ensure that documents, such as notices, updates, and patient records, are delivered promptly. However, the strike delayed the delivery. If this led to missing a deadline for a government-related procedure, they might have had to face audits. If the authorities find any issue, they might charge them a penalty.
Loss of Trust Due to Delays
Due to the strike, it was not possible to determine when the mail would arrive at the recipient’s doorstep. The businesses might have missed essential communication windows for promotional campaigns, billing cycles, and renewal notices.
Additionally, organizations operating in the finance, insurance, and healthcare sectors depend on timely mail for essential updates. Since the mail did not arrive on time, customers must have been left wondering about the business’s reliability.
Moreover, certain companies might have promised delivery within a specific timeframe. Due to the Canadian mail strike, they might have had to deal with broken service-level agreements. This might have led to reputational damage and increased the contract penalties.
How Can Businesses Ensure Timely Mail Deliveries for Similar Situations in the Future?
Switch to Other Shipping Carriers
We advise against relying only on the national postal service and instead building relationships with private carriers like UPS, FedEx, and others. In case the strike happens again or there is a service disruption, you can quickly and seamlessly transition to these alternate logistics solutions. Make sure to test these service providers to ensure that they meet your standards.
Stay Up-to-Date
Keep an eye on the updates from Canada Post or any other mail carrier that you rely on. We recommend subscribing to service alerts, joining the industry mailing list, and following our social media channels. Knowing the timelines of events in such scenarios can help you act quickly. You can also assign team members to keep tabs on the updates so that you don’t miss any information. Early awareness will help you communicate the current situation to the customers and prepare contingency shipping in case the issue escalates.
Use Multiple Communication Channels
You must have multiple avenues to reach the customers. You can use digital communication channels, such as SMS alerts, client portals, and email newsletters, in addition to direct mail. This will ensure effective communication even during postal disruption. Having a multi-channel strategy will ensure your customers are informed and engaged, regardless of the status of physical mail.
Conclusion
If the involved parties are unable to establish new agreements that are acceptable to both, the strike may likely happen again. You can follow the tips mentioned above to ensure that, regardless of the situation, your mail arrives at the recipient’s doorstep.
Frequently Asked Questions
Is the Canada Post Strike Still Going On?
No, the Canada Post strike ended in December 2024. They have resumed their full-service-level operations almost three weeks after the strike ended. They have reinstated their on-time service guarantees as of January 6, 2025.
Why is Mail Delivery Through Canada Post Slow Right Now?
The nationwide strike by the CUPW halted Canada Post operations between November 15, 2024, and December 17, 2025. This led to a backlog of approximately 25 million parcels, which took several weeks to clear even after the postal service provider became operational. While the on-time service guarantee has resumed, you can expect delays for transaction mail, international packages, and neighborhood mail.
When Did the Longest Postal Strike Take Place in Canada?
It happened in 1975 and lasted six weeks. It took place due to prolonged discussions between the Postmaster General and the Canadian Union of Postal Workers.
Did Canada Post Allow Mail to Be Sent During the Strike?
No, Canada Post stopped accepting parcels and mail, and many post offices were closed. This affected both domestic and international mail delivery.
What was the Reason Behind the Postage Suspension to Canada?
From November 15, 2024, approximately 55,000 Canada Post workers went on strike. This led to a halt in the mail processing and delivery. Considering this, several countries, like the USA and Australia, stopped their mail services to Canada until they were fully confident that Canada Post had stabilized its operations.
Disclaimer: This blog provides general information and discussion about postal services, labor strikes, and related subjects. The content provided in this blog (“Content”) is for informational purposes only and should not be construed as legal, financial, or operational advice. PostGrid is not liable for any actions taken based on the information provided. You should consult with relevant professionals or authorities before making decisions impacted by postal disruptions or labor strikes. All Content is provided strictly “as is,” and PostGrid makes no warranties or representations regarding its accuracy or completeness.
