Potential for Canada Post to be in more dire straits post-strike, unless it adopts a new strategy

December 16, 2024 TruthUSA

According to experts, the Canada Post strike may have permanently lost some customers, leading to financial difficulties for the Crown corporation and necessitating a significant strategic change.

After a month-long strike, workers are scheduled to resume operations on Tuesday, as many businesses and individuals turned to private carriers for package deliveries during the stoppage.

McMaster University business professor Marvin Ryder suggests that while some companies will likely return to using Canada Post due to its cost-effective shipping rates, others who switched to alternative couriers may not return.

Furthermore, organizations that have not yet transitioned from paper to digital platforms may now opt for online-only invoicing and communication, further reducing Canada Post’s revenue from letter mail.

Carleton University business professor Ian Lee predicts that an imminent cash shortage could compel the Crown corporation to rethink its daily mail delivery mandate and potentially expand into new areas like banking or government services to increase profits.

Mail services are expected to resume on Tuesday following Labour Minister Steven MacKinnon’s directive to the federal labour board to order employees back to work if a resolution was not reached by the end of the year.