Canadian mail delivery has come to a halt as postal workers protest new orders by the government for a drastic overhaul of the service.
Canada Post, a government-owned company, is in deep financial trouble that officials say will require measures once considered a political third rail, like ending door-to-door mail service and shutting some rural post offices, to save millions of dollars and keep the postal service viable.
Official reviews of the postal service have long recommended such cost-cutting measures, which were announced last week by Joël Lightbound, Canada’s minister for public services. The timing comes as the government is in labor talks with the Canadian Union of Postal Workers, which has been pushing back against any potential service and job cuts.
Here’s what you need to know:
Why is Canada Post on strike?
Declining mail volumes have led to growing financial losses from which Canada Post has not been able to recover, relying instead on cash injections from the government to stay afloat. Parcel delivery has not been able to make up the difference, in part because of the glut of delivery companies that use nonunion gig workers to compete with Canada Post.
Canada Post has lost more than 5 billion Canadian dollars, or about $3.6 billion in U.S. currency, since 2018. Canceling door-to-door delivery for four million homes, consolidating services and shutting down some rural post offices would help the company save millions, the government said.