Canada Post employees have announced a nationwide strike after the Canadian government called on the postal company to undergo a major transformation to strengthen its finances and modernize its operations.
This was reported by the Canadian Union of Postal Workers, according to Reuters.
“In response to the government's attack on our postal service and workers, all CUPW members at Canada Post are now declaring a nationwide strike,” the union said.
Canada Post said its operations would be suspended during the strike and that its customers could expect delays.
“The corporation is disappointed that the union has decided to escalate its strike action, which will further worsen Canada Post's financial situation,” the country's main postal service said in an email sent to Reuters.
Earlier on Thursday, the Canadian government instructed Canada Post to begin major changes to its operations, saying the company faces structural problems that are leading to losses.
"This situation is unsustainable. Canada Post is effectively insolvent, and repeated financial injections are not a long-term solution.
A transformation is needed to ensure Canada Post's survival and protect the services Canadians rely on," the government said in a statement.
The government added that it is also reviewing the process of increasing the cost of postage stamps.
The union said that the announcement by Joel Lightbound, the minister responsible for Canada Post, did not provide clear details on how the changes would be implemented within the organization.
It added that the recommendations, which include, among other things, the retrofitting of mailboxes in communities, could lead to significant job losses and changes in delivery standards.
CUPW said that, according to its information, Canada Post needs time until next week to present new global proposals.