Canada Post workers have begun a nationwide strike after the federal government authorised widespread reforms that would shut some post offices and end certain types of deliveries.
The Canadian Union of Postal Workers (CUPW) called the proposals an “attack on our postal service and workers” as it announced the industrial action.
The strike by the union’s 55,000 members comes amid an ongoing dispute over postal worker’s pay and benefits that resulted in a weeks-long walkout late last year.
Canada Post said operations will shut down during the strike, leaving mail and parcels undelivered for millions, adding that this would compound the corporation’s already dire financial woes.
The sweeping changes announced by the federal government follows years of financial losses sustained by the postal service, which faces reduced demand and stiff competition from private parcel delivery services.
Procurement minister Joël Lightbound said on Thursday that Canada Post lost C$1bn ($717; £535m) last year and is on track to lose C$1.5bn this year.
“Canada Post is effectively insolvent, and repeated bailouts are not a long-term solution,” he said in a statement.
The proposed changes would see the closure of several post offices in areas that were once rural and give the service more flexibility to raise prices. Canada Post could also reduce the types of parcels delivered by air and rely more on ground transportation to save costs.
One significant proposal seeks to end home deliveries, with parcels delivered to community mailboxes instead. An estimated four million addresses still receive home deliveries in Canada.
“The goal, ultimately, is to save Canada Post,” Lightbound told reporters.
The postal workers union said the proposals “will only undermine public service” and not address the needs of customers.
Canada Post said it was “disappointed that the union chose to escalate their strike activity, which will further deteriorate Canada Post’s financial situation”.
“A national strike of any length will impact service to Canadians and businesses well after the strike activity ends,” it added.
The Canadian Association of Independent Business warned that the impact of the industrial action on the country’s small businesses would be “massive”.
“Doing this in the lead-up to the critical holiday retail shipping season is especially troubling,” it said in a statement on Friday.
Government social security cheques will continue to be delivered during the strike.
The issues around pay and working conditions that led to the previous postal strike remain unresolved.
