Burning questions about Canada Post strike answered

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As Canada Post and the Canadian Postal Workers Union try to find their way back to the negotiating table, the ripple effects of their standoff are still rippling across the country. With the holidays quickly approaching, the number of unprocessed packages continues to grow, leaving anxious owners waiting for some sort of holiday miracle — preferably one that involves packages arriving before the big day.

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How many packages are stuck in the backlog?

The strike has exacerbated Canada Post’s existing parcel backlog. Initial estimates suggested 10 million items were delayed, but that number has now risen to 12 million, according to the Crown Corporation’s latest update. This includes packages, letters and promotional mail, most of which are associated with the bustling holiday season.

Where do these beams sit?

Most undelivered items are stored at Canada Post’s thirteen main distribution centres, most of which are located in the urban centers of Toronto, Vancouver, Calgary and Montreal. Reportedly, mailboxes across the country are being disinfected and emptied of letters and small packages, which are then forwarded to these central facilities to await processing.

How much money is Canada Post losing?

Crown’s financial losses are significant, with revenue loss to date estimated at $100 million, primarily due to unprocessed packages and canceled shipping orders. Businesses and individual customers are increasingly turning to other delivery companies such as FedEx and United Parcel Service Inc. and Purolator to ensure timely delivery, further reducing Canada Post’s revenue.

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What is the impact on other courier companies?

Courier companies are feeling the pressure. Purolator, a subsidiary of Canada Post, expects to handle more than 43 million packages during peak season, including more than 25 million in the month before Christmas. To manage the massive influx of packages, Purolator temporarily stopped accepting new shipments in early December to avoid further strain on its distribution network. Severe weather and increased package volumes led to the decision to freeze service to some partners and prioritize “critical shipments,” Purolator said in an email.

Meanwhile, small businesses that rely on reliable shipping continue to struggle. Pop Music, an independent record store in Toronto, issued a statement to its customers warning of nationwide restrictions on courier services, saying: “There are significant delays in receiving orders this week due to the Purolator and UPS power outages. We can’t even print Posters!

What is being postponed?

The backlog isn’t just limited to holiday gifts. Canadians share stories of undelivered urgent items of a particularly critical personal or financial nature, including:

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• A bride in Winnipeg awaits her custom wedding dress.
• A family in Montreal is unable to retrieve the ashes of a deceased relative.

For these customers, delays are more than just an inconvenience.

What will happen next?

Until the recent hiatus, negotiations between Canada Post and the union had been fraught with tension. Even if an agreement is reached soon, Canada Post estimates it could take six to eight weeks to clear the current backlog. This timeline could be extended further if weather or technical issues disrupt operations during the recovery period.

The ongoing strike is an indication of deeper issues within Canada Post, some of which have been years in the making and carried over from previous labor disputes. Canada Post stressed the need to modernize its services and operations in order to offset declining revenues from traditional mail and offer weekend delivery options to its customers.

• Email: shcampbell@postmedia.com

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