CUPW Negotiations & Potential Canada Post Strike – Everything We Know So Far

Remember the chaos of November 2024?

Just as Black Friday deals were going live, around 55,000 Canada Post workers walked off the job in a nationwide strike. Warehouses backed up. Orders sat in limbo. Customers flooded inboxes with complaints.

For Canadian e-commerce businesses, it wasn’t just a disruption—it was a logistics nightmare.

The strike, which began on November 15, 2024, brought parcel delivery to a near halt right before the busiest time of year. Many businesses, especially small and medium-sized ones that rely heavily on Canada Post, were forced to issue refunds, reroute deliveries, or take a hit to their brand reputation.

In mid-December, the Canada Industrial Relations Board stepped in and ordered workers back to work, temporarily extending the expired collective agreements until May 22, 2025. At the same time, the federal government created an Industrial Inquiry Commission (IIC) to assess the breakdown in negotiations and recommend a path forward.

Now, that May 22 expiration date is fast approaching—and the IIC’s final report is due just a week earlier, on May 15.

What does that mean for your business?

If no agreement is reached, we could be looking at another strike, another slowdown, and another hit to your customer experience and bottom line.

Let’s dig deeper into what’s happening, what’s at risk, and most importantly—how your brand can stay resilient if deliveries slow down again.

Where things stand: The current status of CUPW negotiations

With just weeks to go before Canada Post’s temporary agreement with CUPW expires on May 22, 2025, businesses across Canada are bracing for what could come next. At the time of writing, no new contract has been signed, and the union has made it clear: they’re prepared to strike again if needed.

What’s happening right now?

Negotiations resumed earlier this year but remain at a standstill. CUPW continues to advocate for better working conditions and input on workplace technology, while Canada Post faces its own financial and operational pressures. With both sides locked in, the federal government stepped in—this time through a more structured process.

What Is the Industrial Inquiry Commission (IIC)?

To better understand and potentially resolve the impasse, the Minister of Labour established an Industrial Inquiry Commission (IIC) in late 2024.

The IIC is a neutral, third-party commission tasked with investigating the root causes of the failed negotiations between Canada Post and CUPW. It conducted formal hearings, reviewed submissions from both parties, and gathered feedback from key stakeholders—including labour leaders, management, and independent experts—between December 2024 and February 2025.

The commission’s final report and recommendations are due on May 15, 2025, just one week before the temporary agreement expires. These recommendations are not legally binding, but they are expected to significantly influence the course of the negotiations and public opinion.

What happens next?

As of now, there is no new agreement in place, and CUPW has already indicated its readiness to resume strike action if necessary. That means if meaningful progress isn’t made immediately after the IIC’s report is released, a second strike could legally begin as early as May 22, 2025.

This looming deadline once again places thousands of e-commerce businesses in a precarious position—particularly those that depend heavily on Canada Post for fulfillment and last-mile delivery.

With summer campaigns and back-to-school shipping cycles on the horizon, any disruption could repeat the chaos of late 2024, if not worse.

What a potential strike could mean for your e-commerce business?

Whether you’re ramping up for summer sales, planning a product launch, or just trying to get orders out the door on time, one thing is non-negotiable: your shipping needs to run smoothly.

But with another possible Canada Post disruption on the horizon, now’s the time to consider what that could actually mean for your operations—and your customers.

Delivery delays that could cost you customers

Canada Post plays a huge role in last-mile delivery across the country, especially in rural or hard-to-reach areas. If a strike happens, delays are almost guaranteed—and if you’re still relying on just one carrier, your risk goes up.

What happens when packages don’t arrive on time?

• You get frustrated customers
• Refund requests and bad reviews roll in
• And worst of all—some customers may not come back

Customers expect speed, especially for things like gifts, perishable items, or seasonal products. And if they get burned once, they’ll likely shop somewhere else next time.

Fact: During the November 2024 Canada Post strike, nearly 10 million parcels were delayed, creating a substantial backlog that took weeks to clear—even after workers returned on December 17. This disruption led to significant losses for small and medium-sized businesses, with estimates reaching $1.6 billion by mid-December.

Extra stress for your team

It’s not just your customers who feel the impact of delayed deliveries—your internal teams feel it too. When shipping slows down, everything behind the scenes becomes reactive instead of strategic.

• Your support team gets swamped with emails and calls asking “Where’s my order?”—often with no clear answers to give.
• Your warehouse and fulfillment staff are suddenly juggling reroutes, last-minute packaging changes, and unexpected carrier handoffs.
• And your logistics team? They’re spending their time chasing down backups, re-negotiating rates, and trying to keep things afloat.

In these moments, growth takes a back seat. Without a plan, your operations quickly shift from proactive to crisis mode—draining resources and morale just when your business needs focus the most.

Unexpected costs that eat into your margins

When disruption hits and you’re forced to pivot to a new carrier at the last minute, it almost always comes with a higher price tag—and for small and mid-sized businesses, that can quickly add up.

Regional couriers or express services often charge more for things like rush deliveries, weekend drop-offs, or extended coverage areas. And if you’re not prepared, you may have no choice but to absorb those costs just to keep orders moving.

What does that mean for your business?

• Profit per order shrinks, especially on low-margin products
• Refunds or reshipments come out of your pocket when delays occur
• Customer service costs rise, as your team spends more time managing unhappy buyers

It’s a ripple effect: your expenses go up, but your pricing stays the same—and that puts direct pressure on your bottom line.

According to Epost Global, businesses that relied solely on Canada Post during the 2024 strike are still feeling the financial impact months later. Those without backup carriers found themselves overspending, overwhelmed, and underprepared.

If you’re not building cost flexibility into your logistics strategy, you’re not just risking delays—you’re risking your profitability. This isn’t just about logistics—it’s about protecting your brand, your revenue, and your customer relationships.

A delivery delay can cause a ripple effect across your business. It impacts how customers feel about you, how your team spends their time, and whether you hit your financial goals. 

Proactive strategies for mitigation

If the last strike taught us anything, it’s this: waiting until things go wrong is not a strategy. E-commerce businesses that thrived despite the disruption had one thing in common—they planned ahead.

Here are four smart ways you can get proactive now and protect your operations before another potential Canada Post strike.

Carrier diversification: Don’t put all your packages in one basket

Carrier diversification means working with multiple courier partners instead of depending entirely on one provider—like Canada Post—for all your shipping needs. For most e-commerce businesses, this isn’t about managing drivers or doing deliveries in-house. It’s about building relationships with different carriers, so you always have a backup plan when delays, disruptions, or capacity limits hit.

Here’s how to think about it and why it matters:

Use a mix of national and regional carriers

National couriers like Canada Post offer broad coverage but may become overwhelmed during peak periods or strikes. Regional carriers, on the other hand, specialize in specific geographic zones—and that can be a game changer.

Take Ecom Express, for example. It’s a dedicated carrier service offered by Ecom Logistics, focused on same-day and next-day delivery in major Canadian cities. Because it operates outside of Canada Post, it gives businesses reliable service—even when postal delays hit.

By layering in regional carriers:

• You get faster delivery times in key markets
• You reduce your dependency on any one network
• You gain access to more flexible delivery windows, especially in urban centres

When national services slow down or stop, regional carriers can keep your business moving.

Partner based on customer location and delivery expectations

Every order doesn’t have to follow the same shipping route. Use delivery data to guide your carrier strategy.

For example:

• Ship GTA orders with a fast regional courier like Ecom Express
• Use a national carrier for rural or long-distance destinations
• Assign specialty carriers for bulky, temperature-sensitive, or high-value shipments

This approach gives you control, matches customer expectations more closely, and helps you avoid last-minute surprises.

Have backup carrier partnerships ready to activate

Don’t wait until a strike hits to look for alternatives. Start vetting and onboarding backup couriers now—so you’re not scrambling later.

This could mean:

• Setting up accounts with 2–3 carriers, even if they’re not your primary choice
• Testing them with low-risk shipments to validate service quality
• Having negotiated rates and SLAs (service level agreements) in place ahead of time

When disruptions occur, the businesses that pivot quickly are the ones that already have trusted options in their corner.

In short, carrier diversification isn’t just a backup plan—it’s a smarter way to ship every day.

Want to dig deeper?

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Smarter inventory management: Ship from where it matters most

When it comes to fast, reliable shipping, location is everything. It’s not just about how quickly your couriers can deliver—it’s about where your inventory starts its journey.

If all your stock is stored in one place—especially if it’s far from your biggest customer base—you’re setting yourself up for longer transit times, higher shipping costs, and major delays if anything in that area is disrupted.

That’s why now is the time to rethink how your inventory is distributed.

Use multiple fulfillment hubs across Canada

Storing inventory in more than one region can drastically cut down your average delivery window. It also lets you route orders through areas that aren’t affected by delays or postal disruptions—keeping your business running smoothly even when one part of the supply chain slows down.

If you’re working with a 3PL like Ecom Logistics, you can take advantage of our national fulfillment infrastructure to distribute your products across high-demand zones.

Leverage on-demand warehousing to stay flexible

Sales trends change. Inventory levels fluctuate. Promotions can spike demand overnight. That’s why flexibility matters.

On-demand warehousing allows you to scale up storage only where and when you need it—without committing to long-term contracts or overextending your resources. It’s ideal for seasonal surges, product launches, or regional campaigns.

This flexibility is especially important during labour disruptions when shipping from a single location may no longer be viable.

Prioritize fast-moving SKUs in metro hubs

Not all products sell the same way, and not all regions order the same items.

Place your top-selling products (SKUs) in fulfillment centers near major urban hubs like Toronto, Vancouver, or Montreal. That way, you can get the most in-demand items out the door faster—and avoid tying up valuable space with slower-moving stock.

When your inventory is aligned with your order data, fulfillment becomes faster, cheaper, and more predictable.

If you’re not sure where to start, work with a fulfillment partner who can help you analyze your order patterns and optimize your stock placement accordingly.

Transparent customer communication: Say it before they ask

During a disruption like a potential Canada Post strike, one of the most important things you can do is keep your customers informed. Because when it comes to shipping, most customers don’t expect perfection—they expect transparency.

And if something might go wrong, they want to hear it from you—not their tracking page, not after three days of silence, and definitely not after they’ve already emailed your support team in frustration.

Let’s break down how you can communicate clearly and proactively—without creating panic or overwhelming your ops team.

Start with the basics: Set clear expectations upfront

A great customer experience starts before the purchase. Make sure your website reflects the realities of the current shipping landscape.

This includes:

• Updating your shipping FAQs and policy pages with realistic timeframes
• Adding quick notes or banners at checkout if delays are possible
• Being upfront on product pages if certain regions or carriers may be slower

If there’s even a chance of disruption, a quick message like “Due to potential postal delays, your order may take an extra 1–2 business days” can go a long way in setting the right expectations.

Use order confirmation emails to reassure, not just confirm

Once the order is placed, don’t let your confirmation email be a dead end.

Instead, use it as a touchpoint to:

• Acknowledge the situation (e.g., “We’re monitoring the CUPW negotiations closely and have added backup couriers.”)
• Offer realistic delivery windows
• Share your support contact info, just in case

This shows your customers that you’re on top of things—and they’ll appreciate the honesty.

Keep them in the loop with real tracking updates

You know what frustrates customers more than a delayed order? A tracking link that doesn’t update for days.

Now’s the time to make sure your tracking tools are working the way they should. Real-time updates, working links, and delivery status notifications help customers stay informed without needing to reach out.

And when issues do come up, you’ll already have earned their trust.

Be honest about the “Why”

Transparency builds loyalty. If you’ve changed your delivery partners or expect delays due to the ongoing CUPW negotiations, say so.

You don’t need to go into all the details. A simple line like “We’ve adjusted our carrier network to ensure your order still gets to you as quickly as possible, even with potential Canada Post disruptions” shows that you’re being proactive and customer-first.

In a peak season or during national uncertainty, your support team is already going to be busy. By setting clear expectations upfront, staying honest, and using automation where it helps, you can reduce stress on both sides—and turn a tricky situation into a loyalty-building moment.

How Ecom Express helps you deliver—even during disruptions

In a market where speed and consistency can make or break the customer experience, e-commerce businesses can’t afford to rely on just one delivery network—especially when labour disruptions are looming.

That’s where Ecom Express, the last-mile delivery arm of Ecom Logistics, comes in.

The goal of Ecom Express is to give Canadian e-commerce businesses a faster, more reliable alternative to traditional postal carriers like Canada Post. And in times of uncertainty—like a potential CUPW strike—it’s more than a nice-to-have. It’s your safety net.

Fast, flexible delivery options

Speed matters—especially when your customers expect their orders ASAP. With same-day and next-day delivery available across major Canadian cities, Ecom Express helps you meet tight delivery promises without relying on Canada Post.

Whether it’s a rush order in Toronto or next-morning delivery in Vancouver, our regional coverage gives you the flexibility to ship fast, without premium courier prices. It’s fulfillment that keeps up with how your customers shop.

Flat pricing, no surprises

Unpredictable fees can wreck your margins—especially during peak season. That’s why we offer simple, flat-rate pricing with no hidden surcharges. You’ll always know what you’re paying upfront, making it easier to plan and scale with confidence.

Sustainable delivery with EVs

We’re driving toward a greener future with an expanding fleet of electric vehicles (EVs) in our delivery network. Ecom Express helps you lower emissions and operate more sustainably—without compromising speed or reliability. It’s a smarter way to deliver in busy urban areas and aligns with our #NetZero2030 goal.

Tech that gives you the edge

Our platform is designed for visibility and control—because in last-mile delivery, precision matters. With real-time updates, proof of delivery, and smart route optimization, you get the tools to ensure every shipment arrives on time and your customers stay informed.

Built for high demand and uncertainty

From holiday surges to unexpected strike scenarios, we’re experts in handling high order volumes and adapting quickly under pressure. Ecom Express is designed to scale with your business, giving you the flexibility to grow—and the stability to keep moving when the unexpected happens.

Whether you’re shipping 100 or 10,000 packages a day, we’ve got the network and experience to keep you covered.

If you’re looking for a last-mile partner that delivers fast, stays agile, and grows with you—Ecom Express is ready.

Stay ready, stay ahead

If the 2024 strike taught us anything, it’s this—logistics disruptions don’t wait, and neither should your business.

Now is the time to strengthen your delivery network, diversify your carriers, and build resilience into every part of your fulfillment strategy. Whether it’s planning ahead for May or future-proofing for the next peak season, the businesses that prepare early are the ones that keep delivering—on time and without compromise.

At Ecom Logistics, we help e-commerce businesses like yours stay agile, scalable, and customer-focused—no matter what the delivery landscape looks like.

Looking for a reliable partner to navigate what’s next? Let’s talk.