Canada Post may be facing a new wave of customer churn, despite the fact that the postal workers’ union has temporarily abandoned the strike. Instead, since the end of last week, a ban on overtime has been imposed — no more than eight hours a day and 40 hours a week.

According to the company, the volume of parcels delivered has fallen by 1.3 million in recent days — almost 50% less than in the same period last year. Many customers have already switched to private couriers or canceled shipments to avoid disruptions.

The situation is aggravated by the company’s multi-year financial losses — more than $3.8 billion since 2018. After a strike in December 2024 and a $1 billion loan from the federal government, the situation has only worsened. Reports indicate that the company is de facto “bankrupt” and needs urgent reform: part-time employment, flexible routes, closing unprofitable branches.

Amid falling demand and digitalization — banks and companies are increasingly moving customers to e-mail — demand for traditional mail continues to decline. The average family receives only two letters a week, down from seven in 2006.

Despite the decline, the workforce of more than 55,000 employees has hardly been cut.

The union is pushing for negotiations, but some workers, like Edmonton postman Dustin Ellis, are demanding that management's new proposal be put to a vote: it provides for a salary increase of almost 14% over four years.