Canada Post has increased postage rates by around 25%, citing inflation and operational challenges.
According to a Monday news release, the price of a single domestic stamp has risen from $1.15 to $1.44. Stamps bought in booklets, coils, or panes now cost $1.24 per stamp, an increase of 25 cents.
“For the last decade, Canada Post has kept regulated letter mail rate increases to a minimum,” reads the release. “Every year, there are fewer letters to deliver to more addresses, which adds significant cost pressures to the Corporation on top of continued inflationary pressures.”
The corporation estimates that the average cost increase due to these rates will be $2.26 annually per Canadian. The average Canadian small business will see costs increase by around $42.17 annually.
Canada Post recorded a financial loss of $748 million in 2023, following a loss of $548 million in 2022. While Canada Post delivered 5.5 billion letters in 2006, it delivered only 2.2 billion in 2023.
The recent Canada Post strike lasted 32 days after over 55,000 workers walked off the job on Nov. 15 as the Canadian Union of Postal Workers looked to increase wages, pensions, and improve their health benefits.
The Canada Industrial Relations Board eventually ordered employees back to work on Dec. 17, just in time for Santa to send out his letters.
True North previously reported that small businesses were feeling “crushed” by the Canada Post strike amid the busiest mailing season as costs soared.
President and co-owner of Lambskin Specialties, Myron Schultz, told True North that the strike resulted in him having hundreds of thousands of dollars in limbo.
“My perspective is that both the Canada Post management and the union played a game of chicken, and everybody lost,” said Schultz.
The Canadian Federation of Independent Businesses previously revealed that the strike would cause 73% of small business owners to use Canada Post less in the future.
“It should alarm us all that thousands of small firms will permanently abandon the use of Canada Post as small businesses have been forced to put alternatives in place. Canada Post and its union may well have lost their last reliable customers – small business owners,” said Dan Kelly, president of the federation.
The stamp price changes were initially proposed in Sept. 2024 and received final approval in Nov. 2024.
Despite being a Crown corporation, meaning the federal government owns it, Canada Post primarily relies on business revenue to fund its operations.
“As an organization funded by revenue from the sale of its products and services—not taxpayer dollars—rate changes are a reality,” reads the release.
Canadians can still use permanent stamps, which will be accepted at the domestic postage price. Rate changes will affect other products like U.S. international letters and domestic registered mail. Prices for commercial letter mail have also risen.