In a new article from FreightWaves, Alison Layfield, Director of Product Development at ePost Global, weighed in on the growing concerns around Canada Post’s inability to reach a labor agreement as peak season approaches.
After contract talks between Canada Post and the Canadian Union of Postal Workers (CUPW) resumed last week, both sides immediately accused the other of unrealistic expectations, leading to another stalled round of negotiations. The impasse arrives as parcel volumes continue to fall and business confidence in the system erodes.
“It’s very concerning they still have not reached an agreement with another peak season around the corner,” said Layfield, emphasizing the stakes for brands that rely on Canada Post for fourth-quarter delivery.
With parcel volumes already down 36.5% year-over-year and the postal operator posting its largest-ever quarterly loss — US$294 million — Layfield argued that restructuring is no longer optional:
“Canada Post reduced rates to compete with other parcel carriers in hopes of maintaining, or regaining, market share, but they were unsuccessful… Their network flow — built for letter delivery — is not conducive to support a parcel delivery solution. Canada Post has no choice but to restructure their business model to even begin to compete.”
