Experts suggest Canada Post report places union in a difficult position.

OTTAWA — According to experts, a significant report on Canada Post lends substantial support to the Crown corporation's narrative regarding its struggling business, which poses challenges for the union seeking to negotiate improved terms for postal workers.

"If I were in the union's shoes, I would be very disappointed with this outcome," stated Marvin Ryder, an associate professor of marketing and entrepreneurship at the DeGroote School of Business. The Industrial Inquiry Commission's report arrives less than a week before Canada Post and the Canadian Union of Postal Workers are meant to finalize a new collective bargaining agreement — a deadline that could potentially lead to another stoppage in mail deliveries following a brief pause after the holiday strike. The 162-page report, released on Friday, also suggests significant restructuring for Canada Post, including the transition away from daily door-to-door letter delivery to individual addresses, while still maintaining daily service for businesses. Moreover, it recommends lifting moratoriums on rural post office closures and community mailbox conversions. According to commissioner William Kaplan, who authored the report, "My recommendations are grounded in my belief that there is a way to preserve Canada Post as a vital national institution."

He added that these suggestions are designed to address current problems and reverse the financial downturn by implementing necessary changes both inside and outside of existing collective agreements. The report was commissioned after the federal government requested that the labour board intervene to return postal workers to their duties last year, following a strike that interrupted holiday mail services. Examining Canada Post's financial situation in the context of labor negotiations, Kaplan noted that the two sides are "diametrically opposed," leading to stalemates in discussions. He emphasized that the responsibility for the lack of agreement lies particularly with one side. "Bargaining largely failed because one party – CUPW – is defending business as usual," he indicated, suggesting the union is insisting on improvements related to the "status quo.

" "In essence, his report suggests to the union that they need to change their approach," Ryder commented. "Whether they will, I can't say, but I hope this report will prompt intense negotiations in the coming days." Kaplan warned that Canada Post is facing an existential crisis and is essentially insolvent. "Without thoughtful, measured, and immediate changes, its fiscal situation will keep deteriorating," he stated. Canada Post CEO Doug Ettinger expressed that Kaplan's report provides a clear and candid evaluation of the challenges facing the Crown corporation, welcoming its recommendations as timely for bolstering the economy against potential threats from the U.S. Kaplan noted that, until recently, Canada Post managed to operate sustainably, where low-cost urban and suburban mail deliveries subsidized more expensive rural, remote, and Indigenous community services. However, he remarked, "This model no longer works because the traditional core business – mail delivery – has fundamentally changed: fewer letters must now be delivered to more addresses." Stephanie Ross, an associate professor in the School of Labour Studies at McMaster University, concurred with Ryder's assessment that "on balance, (Kaplan) favors the employer" in the report.

Among other recommendations, the report states that Canada Post should have the flexibility to hire part-time employees for weekend parcel deliveries and to address volume fluctuations during the week. Furthermore, it suggests that Canada Post needs to modify delivery routes daily based on demand. Throughout the negotiations, CUPW has resisted proposals that would involve employing part-time workers for shift coverage, arguing that such measures could jeopardize job security for full-time staff. Kaplan mentioned that any part-time positions "should not be gig jobs, but rather good, attractive jobs" in line with collective agreement terms. While Ross saw this as a potential silver lining for CUPW, she noted it would still be challenging for the union if full-time employees were displaced and forced into part-time roles. "I'm left with a set of recommendations that feel quite daunting," she remarked. "And I'm uncertain what the union stands to gain, apart from the realization that refusing to accept these measures may jeopardize their job security in the long run." The reprieve granted by the federal labour board ends on May 22, after which labor disruptions could potentially resume. However, Ryder noted that this process is not automatic and the union retains some control over the timing or decision to initiate a strike. Ross mentioned that, upon initial review, she does not believe the report moves negotiations towards a resolution. While it indicates CUPW may need to make concessions, it does not present an incentive for workers to compromise on their key demands. "There's no indication that we won't see a resumption of labor disruptions," Ross cautioned. CUPW has stated it "fundamentally" disagrees with the majority of the report's recommendations and disputes some of the information that informed it. "We also criticized the whole process but felt it was necessary to participate to represent postal workers," the union noted in a statement. The union asserted that the recommendations suggest service cuts, outsourcing, and significant rollbacks on critical provisions in their existing agreements. On Friday, the union met with Patty Hajdu, the newly appointed minister of jobs and families, and John Zerucelli, the secretary of state for labor, to discuss the report and ongoing negotiations. "Minister Hajdu reassured us that Canada Post is committed to the bargaining process and will soon present us with proposals," the union stated. In a social media post later that day, Hajdu remarked that the report offers "thoughtful suggestions on how to continue good-faith negotiations," urging all parties to focus on shared goals to ensure a robust postal system moving forward. Earlier in the week, Canada Post had temporarily suspended negotiations with the union, citing the need to regroup after several unproductive discussions to develop proposals that reflect the postal service's financial realities. CUPW denounced this as a "tactic" and accused the employer of lacking genuine intent to negotiate.
On Friday, Ettinger remarked that Canada Post "will collaborate with our bargaining representatives and our shareholder, the Government of Canada, to address our challenges and ensure a sustainable future." This report by The Canadian Press was first published on May 16, 2025. 
The Canadian Press**