Article – The labor union representing Canada Post workers isn’t buying what a new financial review is selling. And they’re not holding back their criticism.
After the release of a government-commissioned report on Canada Post’s financial health, the Canadian Union of Postal Workers (CUPW) voiced sharp objections on Monday, claiming the analysis presents a skewed perspective that heavily favors management’s position.
“This review reads like it was written by Canada Post executives themselves,” said Jan Simpson, CUPW National President, in a statement that set the tone for what has become an increasingly tense standoff between workers and the Crown corporation.
The report, prepared by independent advisors Sunil Johal and Mary O’Neill, suggests Canada Post faces significant financial challenges in the coming years. Their analysis predicts the postal service could face annual losses of up to $1 billion by 2030 if it continues operating under its current business model without significant changes.
But Simpson and the union leadership see things differently. They argue the report has serious methodological flaws, including what they describe as “an extremely partial analysis of parcel revenues” and insufficient attention to Canada Post’s profitable parcels business, which has seen substantial growth as e-commerce continues to boom across the country.
“They’ve painted a picture of doom and gloom while ignoring some of the most promising aspects of our operation,” Simpson noted.
According to CUPW, the report inappropriately focuses on declining lettermail volume—a trend affecting postal services worldwide—without adequately acknowledging the transformation already underway at Canada Post as it pivots toward package delivery and other revenue streams.
Financial data backs up some of the union’s concerns. Canada Post’s parcel volumes rose 31% between 2019 and 2022, generating $3.8 billion in revenue last year alone. This growth offsets some of the decline in traditional mail services, though not completely.
The independent advisors who authored the report have defended their work, maintaining they conducted a thorough analysis based on multiple sources of data and extensive consultations with stakeholders including the union itself. They noted their mandate was to provide an unvarnished assessment of Canada Post’s financial situation to inform future decision-making.
Public Services and Procurement Minister Jean-Yves Duclos, whose department oversees Canada Post, has attempted to strike a conciliatory tone, emphasizing that the report is meant to serve as “one input among many” as the government considers the future of postal services in Canada.
“We value the input of postal workers who are on the front lines every day,” Duclos said in a statement to The Star. “Their perspective is essential as we work toward ensuring a sustainable postal service that meets the needs of Canadians.”
Behind the public sparring lies a deeper conflict about the future of one of Canada’s oldest public institutions. Canada Post has operated as a self-sustaining Crown corporation since 1981, with a mandate to provide universal service while remaining financially self-sufficient.
Economist Jim Stanford, director of the Centre for Future Work, suggests the debate reflects a fundamental question about public services. “There’s an underlying tension between treating essential services as pure business ventures versus recognizing their broader social and economic roles,” Stanford told me in a phone interview.
This dispute emerges as Canada Post and CUPW prepare to enter collective bargaining later this year, with the current agreement set to expire in December. The timing of the report’s release has further complicated an already challenging negotiation landscape.
For communities across Canada, particularly in rural and remote areas where postal service remains a crucial link to the broader economy, the outcome of this dispute carries significant implications. Canada Post operates approximately 6,000 post offices nationwide and delivers to more than 17 million addresses.
The crown corporation has experimented with various initiatives in recent years to diversify revenue, including financial services in rural communities, same-day delivery in urban centers, and expanded parcel locker systems to accommodate growing e-commerce volumes.
David Camfield, a labor studies professor at the University of Manitoba, sees this as a pivotal moment for the postal service. “What we’re witnessing is more than just a debate about finances—it’s about competing visions for what a public postal service should be in the digital age,” he explained.
As the government considers its next steps, Canadians may find themselves at a crossroads between different models for postal service—one focused primarily on financial sustainability and another that emphasizes the broader social and economic benefits of a robust public postal system.
For now, the union is calling for a more collaborative approach to addressing Canada Post’s challenges. “We need solutions that work for everyone—customers, communities, and the dedicated workers who make this essential service possible every day,” Simpson concluded.
The government has indicated it will use the coming months to review both the report and the feedback it has received before making any decisions about Canada Post’s future direction.
