Ottawa Approves 25 Percent Hike in Stamp Rates for 2025

A Canada Post employee drives a mail truck at a delivery depot in Vancouver, on Dec. 17, 2024. The Canadian Press/Darryl Dyck

Ottawa has approved a 25 percent hike in stamp prices with the new rates set to take effect on Jan. 13, 2025. The rate change was made by Canada Post prior to the general strike.

The new prices will see a domestic letter stamp increase from 99 cents to $1.24, as first reported by Blacklock’s Reporter. Letter stamps destined for U.S. addresses will increase from $1.40 to $1.75 and international stamps will rise from $2.92 to $3.65.

The upcoming price increase marks the second adjustment to stamp prices since May 2024, when the price rose from 92 cents to 99 cents.

The stamp increase comes on the heels of Federal Labour Minister Steven MacKinnon asking the Canada Industrial Relations Board to order 55,000 striking Canada Post employees to return to work. The Crown corporation had been on strike for four weeks, which MacKinnon said was harming small businesses and charities during the holiday season.

An industrial inquiry commission will be appointed to examine the issues that were preventing the Canadian Union of Postal Workers (CUPW) and Canada Post from coming to an agreement. MacKinnon will direct the commissioner to provide recommendations on how to resolve these issues by May 15, 2025.

CUPW negotiators had given several demands related to wage increases over the next four years, a cost-of-living allowance, expanded medical days, increases of short-term disability payments, and improved rights for temporary workers. While some progress had been made, the framework was still “far from something members could ratify,” according to the union.

There has been a 60 percent decline in letter mail volumes since 2006, cabinet wrote in a Regulatory Impact Analysis Statement. It noted that Canada’s rapidly increasing population meant the postal agency was required to serve a growing number of addresses every year.

“Decreasing revenues paired with increasing delivery costs are putting significant financial pressure on Canada Post,” said the document. It noted that combined losses since 2017 have totalled nearly $4 billion and, with financial pressures mounting, “Canada Post must consider and implement options.”

Canada Post recorded a pre-tax loss of $748 million in 2023, according to the latest annual report from the Crown corporation. The report said that “cracks are rapidly appearing in the foundation of the postal system,” and that the corporation needs to “adapt to the dramatic changes in how Canadians live and work today to remain relevant and viable.”

Public Works Minister Jean-Yves Duclos has warned Canada Post must cut costs to compete with non-union rivals like Amazon, which have cut into Canada Post’s market share in parcel deliveries.

“There is an opportunity to increase revenues given the significant increase in the need for package delivery across Canada,“ he told reporters on May 7. ”There is also an opportunity to decrease costs by working with unions.”

Duclos said it was “going to require work” to make the post office competitive.

“There are more competitors now since COVID-19 than there used to be,” he said. “These competitors are paying their workers low wages with no benefits.”