Canada Post has ground to a halt as 55,000 postal workers walked off the job in protest of sweeping federal reforms they say threaten both jobs and public service.

The strike, led by the Canadian Union of Postal Workers (CUPW), follows the federal government’s announcement of plans to shutter some post offices, raise delivery prices, and even eliminate traditional door-to-door home deliveries for roughly four million households still receiving that service. Instead, parcels would be redirected to community mailboxes.

CUPW blasted the proposals as an “attack on our postal service and workers.” The union argues the cuts won’t solve the corporation’s long-standing problems and could leave Canadians—especially seniors, people with disabilities, and small businesses—without reliable service.

Financial Woes Push Reforms

Ottawa says the reforms are unavoidable. Procurement Minister Joël Lightbound revealed that Canada Post lost C$1 billion in 2024 and is on track to lose C$1.5 billion this year. He stressed the service is “effectively insolvent” and can’t rely on taxpayer bailouts forever.

The proposed changes include:

• Closing post offices in certain communities.

• Scaling back air parcel delivery to cut costs.

• Raising postage rates.

• Phasing out home delivery in favour of community mailboxes.

“The goal, ultimately, is to save Canada Post,” Lightbound said.

Fallout Already Building

With operations halted, millions of Canadians and businesses are bracing for major delays in mail and parcels—just as the holiday retail season approaches. The Canadian Federation of Independent Business warned the strike’s timing will hit small businesses especially hard.

Canada Post, for its part, expressed “disappointment” over the strike, warning that even a short disruption will cause long-term service issues and further deepen its financial crisis.

Social security cheques will continue to be delivered, but negotiations over worker pay and benefits remain at a standstill after a similar weeks-long walkout last year.

For now, the future of Canada Post hangs in the balance—caught between a union fighting for fair work and a government trying to rescue an institution in the red.