Oct 18, 2025
Canada's postal service is in the midst of an ongoing labour disruption that continues to affect businesses and consumers across the country. Since September 25, more than 55,000 postal workers walked off the job in a national strike, halting much of the country’s mail and parcel delivery. On October 10, the nationwide shutdown was replaced by rotating strikes, which allow some deliveries to resume while leaving services inconsistent in affected areas.
The labour dispute stems from a federal plan to overhaul Canada Post, including phasing out door-to-door delivery for many addresses and shifting more routes toward community mailboxes. Canada Post says the reforms are necessary to remain financially viable amid falling letter volumes and rising parcel competition. The union opposes the changes, warning of potential job losses and service reductions.
Advertisement
For small business owners and everyday Canadians, the implications are already serious. Many warn the strike could deepen existing pressures from inflation, supply chain costs and uncertain consumer demand.
Small businesses sound the alarm
Small and medium enterprises (SMEs) are among the hardest hit. The Canadian Federation of Independent Business (CFIB) says the strike may push many to abandon Canada Post altogether.
“Canada Post risks losing nearly two-thirds of small business customers if the strike continues," said said Dan Kelly, CFIB president (1).
“Small businesses are one of the last groups of profitable customers for Canada Post. Every time there is a service disruption, more and more businesses leave Canada Post for good. The strike will make the job of saving Canada Post much more difficult."
The organization reports that 13% of small businesses have stopped using Canada Post since the last strike, and nearly 73% say they will use Canada Post less in the future due to ongoing disruptions.
Retailers and exporters have already voiced concern. One print shop in British Columbia told CFIB it has lost revenue because it cannot deliver art prints, greeting cards, or small goods. A native plant nursery in Alberta warned its live plants may die before reaching customers.
Larger private couriers and parcel firms are already benefiting. Reuters reported UPS and FedEx are “rapidly gaining ground” as businesses shift logistics away from Canada Post (2). One business owner told Reuters, “Anything that’s going to take over two days, we are spending extra to ship with them.”
Must Read
- Stop the leak: 5 costs Canadians (still) overpay for every single month. How many are sabotaging your 2026 budget?
- What's your worth? Here are the 3 net worth milestones that change everything for Canadians (and what they say about you)
- Dave Ramsey says this 7-step plan ‘works every single time’ to kill debt, get rich — and that ‘anyone’ can do it
Impact on passport deliveries
The strike has also have affected government services including passport deliveries.
Service Canada has stated that it is using alternate couriers to deliver passports, but some delays may occur. Individuals who have already applied for a passport and did not pay for pickup service may experience delays as their passports are delivered through another courier.
Advertisement
If a passport is stuck in the mail, it will be delivered when the labour disruption ends. For urgent passport needs, individuals are advised to contact Service Canada to arrange for pickup.
Alternatives to Canada Post
With Canada Post services inconsistent due to rotating strikes, businesses and individuals are increasingly turning to private couriers such as FedEx, UPS, Purolator and DHL Express. Some businesses have reported switching to these services to avoid disruptions. For example, Calgary-based YYC Beeswax has opted for FedEx and UPS for domestic shipments, while Ottawa-based Michael Cox, who imports goods from the UK, has had to halt business during the strike due to reliance on Canada Post.
Read more: The ultra-rich are bailing on volatile stocks right now — these 4 shockproof assets are their new safe havens
What this means for consumers
As businesses shift couriers or limit mail-based sales, consumers may see fewer online options, higher shipping costs, delays in delivery and lower inventory in some regions.
For those who depend on mail for bills, cheques and official correspondence, the disruption complicates financial planning.
The Canada Revenue Agency (CRA) is already urging businesses to avoid disruption by using its digital services. The CRA warns on its website that: “Due to the ongoing postal strike, mail delivery may be delayed.” It encourages taxpayers to access tax documents online, file and remit electronically, and register for email notifications.
Charities are also feeling pressure. In Montreal, the Welcome Hall Mission estimated it lost as much as $1 million during past strikes. Sam Watts, president and CEO of the Welcome Hall Mission, told CityNews, “At Christmas time, when we didn’t have mail coming in … that was hard, really hard (3).”
What you can do: tips for businesses and individuals
- For businesses, review your shipping and logistics options now. Private couriers may cost more but offer reliability
- Renegotiate contracts and set flexible delivery expectations for customers
- Avoid mailing cheques or forms — switch to electronic payments and filing whenever possible
- For individuals, monitor online portals for bills, tax notices or government mail rather than relying solely on delivered mail
- If you run a small business, document losses or delays to support insurance or future relief claims
- Stay informed of rotating strike zones before planning mail or parcel pickups and deliveries
Looking ahead with caution
For the forseeable future, uncertainty continues. Rotating strikes mean some areas will see deliveries while others face ongoing delays, meaning businesses must continue adapting. CFIB notes that last year’s strike cost small firms over $1 billion (4), and a prolonged disruption during the holiday season could create even greater challenges.
Canada Post’s market share in parcels has already fallen, from 62% in 2019 to about 23% in 2023 (5), and private couriers are increasingly benefiting from the disruption. With holiday sales and critical correspondence on the line, pressure is mounting on both the federal government and Canada Post to resolve the labour dispute.
For now, businesses and individuals must brace for continued uncertainty, explore alternative delivery options and stay informed about which regions are affected by rotating strikes.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
CFIB (1), (4); Reuters (2), (5); CityNews (3)
You May Also Like
- Here’s how to retire in 10 short years no matter where you live in Canada — even if you’re starting with $0 savings
- If you’re still feeling the pinch this month — don’t panic. Here are 5 easy ways to fix your finances without a total overhaul
- How Warren Buffett’s simple buy-and-hold real estate approach offers a lesson for Canadian homeowners and long-term investors
- Approaching retirement with no savings? Don’t panic, you're not alone. Here are easy ways you can catch up (and fast)
Leslie Kennedy served as an editor at Thomson Reuters and for Star Media Group, followed by a number of years as a writer and editor and content manager in marketing communications, before returning to her editorial roots. She is a graduate of Humber College’s post-graduate journalism program and has been a professional writer and editor ever since.
