The union representing postal workers across the country slammed most of the recommendations made by a federal mediator this week, arguing the key report “skews heavily in favour of Canada Post’s positions.”
The criticism from the (CUPW) comes in the wake of a string of recommendations by veteran mediator William Kaplan, who said Canada Post is effectively “bankrupt,” and without immediate measures the situation will worsen.
In his report, which was presented to the government on Thursday and made public Friday, Kaplan wrote that Canada Post should be allowed to close more rural post offices, open more community mailboxes, and offer weekend parcel delivery with part-time workers.
The Crown corporation should be allowed to close more rural post offices, open more community
Furthermore, he recommended that door-to-door letter delivery be phased out, with daily delivery maintained for businesses.
“We fundamentally disagree with the bulk of its recommendations and challenge some of the information on which it was based,” CUPW said in a statement Friday.
CUPW added that it had “objected to the entire process, but we felt that we had to participate in order to give voice to postal workers.”
A report on Canada Post largely backs the Crown corporation's story about its flagging business and experts say that bodes poorly for the union attempting to negotiate a better deal for the postal service's workers. The Industrial Inquiry Commission report lands with less than a week left for Canada Post and the Canadian Union of Postal Workers to reach a new collective bargaining deal — a deadline that could see mail deliveries halted again after a short reprieve from the holiday season strike. (May 16, 2025 / The Canadian Press)
The report from Kaplan’s Industrial Inquiry Commission comes as the May 22 deadline looms for the two sides to come to an agreement or risk another labour disruption in the form of a strike or lockout. Late last year, ahead of a crucial holiday period, Canada Post workers went on strike for 32 days before being mandated back on the job by Ottawa.
“Canada Post is facing an existential crisis: it is effectively insolvent, or bankrupt. Without thoughtful, measured, staged, but immediate changes, its fiscal situation will continue to deteriorate,” Kaplan wrote in his report.
Kaplan also expressed skepticism that the two sides could reach a deal at the bargaining table, and that binding arbitration also likely wouldn’t be helpful, because Canada Post requires changes in its official mandate from the government.
On Wednesday, ahead of the report, the Crown agency paused contract talks, accusing the union of hardening its positions and “leaving little room for progress.” The union urged Canada Post to get back to the table in its statement on Friday.
“These recommendations amount to service cuts, contracting out, and major rollbacks to important provisions in our existing collective agreements,” the union wrote about the report. “There is also no guarantee that if these changes are made, Canada Post will increase its parcel business.”
Both sides have until May 22 to reach an agreement or face the prospect of a work stoppage
Canada Post CEO Doug Ettinger called the report “a frank and straightforward assessment of the challenges we face.
“It comes at a critical time as our efforts to respond to the changing delivery needs of the country have taken on greater urgency as Canada works to strengthen its economy in response to U.S. threats,” he said.
It is now up to Patty Hajdu, minister of jobs and families, to decide what to do with the report, the union said. Both sides met with Hajdu, along with John Zerucelli, secretary of state for labour, on Friday to discuss the recommendations.
Following the meeting, the union stated that Minister Hajdu “sought to assure us that Canada Post was committed to the bargaining process and will present us with offers soon.”
In a written statement Friday, Hajdu urged the two sides to reach a deal.
“It’s time for everyone to put aside their differences, focus on shared goals, and ensure a strong postal system now and into the future,” Hajdu said.
The union said Kaplan’s report also recognized that “in part, government interference has contributed to our current situation.”
“For now, we will take the minister at her word that she is not ready to intervene,” the union stated.
With files from Josh Rubin and Victoria Gibson
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