Charities may have to pivot – again – as second postal disruption looms

Canada Post employees are set to walk off the job this Friday after talks between the Crown Corporation and the Canadian Union of Postal Workers broke down last week.

In a statement on its website, the union confirmed a 72-hour strike notice has been issued and said the move was partly in response to indications Canada Post plans to “unilaterally change working conditions and suspend employee benefits.”

Canada Post employees went on strike last November, but were ordered back to work by the federal labour relations board at the request of then-labour minister, Steve Mackinnon. The move extended the existing collective agreement until May 22.

“Our goal continues to be negotiated collective agreements that support the well-being of workers, the communities we serve, and the sustainability of the public post,” the union said.

In the event of rotating strike action, Canada Post said it intends to continue delivering mail in unaffected areas. In the event of a national labour disruption, mail and parcels will not be delivered, and no new items will be accepted until the disruption is over. 

The Crown Corporation presented the Canadian Union of Postal Workers with an updated offer earlier today, but the union has yet to respond.

Canada Post said that delivery of socio-economic cheques, like social assistance and disability benefits, will continue regardless of strike action.

“Canada Post remains committed to reaching collective agreements focused on protecting and enhancing the wages and benefits that are important to our people while reflecting the Corporation’s current realities,” read a press release issued by the Crown Corporation following news of the strike notice.

Workers are demanding wage increases and enhanced employment benefits, including coverage for fertility treatments and gender-affirming care.

However, Canada Post’s most recent financial report describes its financial situation as “unsustainable,” citing annual losses since 2018, including a pre-tax loss of $748 million in 2023. 

The corporation is funded by revenue generated by the sale of postal products and services, not taxpayer dollars, but this January, it received a $1 billion loan from the federal government.

The report states that, “without changes and new operating parameters to address our challenges, we forecast larger and increasingly unsustainable losses in future years.”

Canada Post has also claimed that the current collective agreement prevents it from laying off employees who have been with the corporation for more than five or ten continuous years, depending on their hiring date.

Some have suggested Canada privatize its postal service, as Germany and the United Kingdom have, but others argue essential services shouldn’t be expected to earn revenue.

Impact on charitable donations

Charitable organizations, many of which continue to rely on direct mail for donation drives, will be impacted by the labour action.

CanadaHelps estimates that 2024’s month-long mail disruption, which coincided with the holiday season, resulted in more than $250 million in lost revenue for Canadian charities.

“The postal strike had a profoundly negative impact on charities, disrupting mail-based fundraising for organizations across the country,” said Julie Fiorini, general manager of donor services at CanadaHelps. 

“Many Canadians still choose this method of giving to support their favourite charities.”

In 2024, Imagine Canada and other organizations worked with the Canada Revenue Agency to extend the tax receipt deadline so most donations received in early 2025 counted towards a donor’s 2024 income tax. 

However, certain types of donations, including securities and payroll deductions, were exempted from the extension initiative.

Survey data published by the Charity Insights Canada Project (CICP) at Carleton University earlier this year found that 53 per cent of respondents did not adjust their fundraising approach in response to last year’s postal strike. A further 51 per cent said the government’s charitable donation extension had no impact on their donations or operations.