Canadians have been receiving emails from financial institutions and other service providers warning of an upcoming service disruption due to the possibility of a mail strike later this month. If this sounds familiar, it should. Canada endured a month-long strike this past winter that was only ended after the Minister of Labour intervened. So why are there dire warnings of another impending mail strike now?
How We Got Here
The Canadian Union of Postal Workers (“CUPW”) represents employees of Canada Post. Two of the units it represents, the Rural and Suburban Mail Carriers unit (“RSMC”) and the Urban Postal Operations (“UPO”) unit. The most recent collective agreements for these two units expired on December 31, 2023, and January 31, 2024, respectively. Bargaining for new collective agreements officially began on November 15, 2023. After multiple rounds of bargaining and mediation failed, the CUPW issued a 72-hour strike notice on November 12, 2024. Canada Post responded by issuing a 72-hour lockout notice the same day. A nationwide general strike began on November 15, 2024.
The Government Steps in – December 2024
On December 13, 2024, the Minister of Labour, Steven MacKinnon, intervened to put an end to the Canada Post strike by issuing a directive under section 107 of the Canada Labour Code (the “Code”). The Minister directed the Canada Industrial Relations Board (“CIRB”) to hold hearings to determine whether the negotiations between Canada Post and the CUPW had reached an impasse. The CIRB concluded that the parties were not likely to reach a negotiated agreement and ordered the parties to continue negotiations with the assistance of a mediator. The CIRB also ordered postal operations to resume. The parties were to continue working under the terms of the most recent collective agreement until May 22, 2025.
The Industrial Inquiry Commission – Hearings in January and February 2025
As part of his directive, the Minister of Labour also appointed an Industrial Inquiry Commission (the “Commission”) under section 108 of the Code. Led by William Kaplan, the Commission was given the mandate to examine issues that prevented the parties from reaching an agreement, make recommendations about how to amend the collective agreements, and suggest any other changes that ought to be made.
The Commission held public hearings on January 27 and 28, 2025, as well as on February 19 and 20, 2025. Both Canada Post and the CUPW made extensive written submissions to the Commission. Materials submitted by Canada Post can be found here and materials submitted by the CUPW can be found here. The Commission is expected to release its report and recommendations by May 15, 2025.
Negotiations Continued – But Paused as of May 13, 2025
In parallel with the Commission proceedings, Canada Post and the CUPW engaged in multiple rounds of mediated negotiations in an effort to reach terms on a new collective agreement. The latest round of mediated discussions began at the end of April. However, on May 13, 2025, Canada Post advised CUPW that it would be implementing a “temporary pause” in these discussions to allow time for the preparation of a comprehensive proposal. There has been no indication of how long the temporary pause will last or when the comprehensive proposal will be ready. The CUPW expects Canada Post to extend its next offer after the Commission releases its report.
Challenging the Directive – Decision TBD
Government intervention ended earlier labour disputes involving railways, dock workers, and WestJet mechanics over the past several years. In each of these prior cases, the government’s intervention was slightly different, but each imposed binding arbitration on the parties. The union representing workers involved in the rail disputes, Teamsters Canada Rail Conference, launched a legal challenge in the Federal Court of Appeal alleging the directive imposing binding arbitration. They argued the directive was outside of the Minister’s jurisdiction and violated the union’s freedom of association. To date, these legal challenges have not been heard.
The CUPW has also issued a legal challenge to the Minister of Labour’s section 107 directive. The CUPW argued that the directive violated constitutionally-protected rights of the CUPW and its members. The challenge was heard by the CIRB in early March and a decision has been reserved, meaning the CIRB has not yet issued its decision.
Where Do We Go From Here?
As of the time of writing, the parties have not agreed to terms on a new collective agreement. The extension to the latest collective agreements expires on May 22, 2025. Unless the terms are further extended, another strike or lockout could occur after that date resulting in service disruptions across the country.
The Commission is due to submit its findings to the Minister of Labour on or before May 15, 2025. It’s not known what steps, if any, the Minister may take in response to those recommendations. Newly-elected Prime Minister Carney announced members of his new cabinet this week. It appears that Minister Patty Hajdu and Secretary of State John Zerucelli are now responsible for the labour portfolio. Minister Hajdu could intervene once again invoking the powers under the Code to do what is necessary to secure industrial peace between Canada Post and the CUPW or the Minister may leave the parties to their own devices, at least for now.
The CIRB’s decision in the CUPW’s legal challenge could complicate matters further. If the CIRB agrees with the CUPW and sets aside the Minister’s directive, all bets are off. There is no timeline for when a decision will be made by the CIRB.
In the meantime, both Canada Post and the CUPW have stated they are committed to negotiating the terms of a new collective agreement. Despite optimism when the parties sat down with mediators at the end of April, it appears that a wide gulf remains between their respective positions. With so much uncertainty, now is probably a good time to ensure you are signed up for paperless billing.
This is the third article written by employment and labour lawyer, Stephen Torscher, explaining Canada Post’s Labour Dispute. Read “Breaking Down Canada Post’s Imminent Strike,” and “Government Intervenes in Canada Post Strike” to learn more.
Author
Stephen Torscher
Partner and Employment and Labour Law Group Co-Chair
T: 403.705.3660
E: torscher@carbertwaite.com
If you have any questions about labour relations, please contact a member of the Carbert Waite Employment & Labour Law Group.
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