Canadians may find their mailboxes empty next Wednesday if postal workers proceed with a threat to walk off the job.
The Canadian Union of Postal Workers said it may exercise its right to strike on May 25 if a deal cannot be reached with Canada Post.
About 48,000 mail carriers and inside postal workers would be off the job.
The union and Canada Post are at an impasse in bargaining on several key issues.
One of the issues is a salary reductions for new employees. The company wants to reduce labour costs by reducing the salary of new employees from $24 an hour to $17.50, according to the union.
"We are in mediation and our goal is to get a collective agreement, but it is hard to say what will happen," said Denis Lemelin, the president of the Canadian Union of Postal Workers.
Lemelin said Canada Post has brought in new technology to sort the mail resulting in changing working conditions for letter carriers.
Close to 20,000 of Canada Post's 48,000 unionized workers are eligible to retire over the next 10 years.
Although the points of call, or new addresses, are increasing by about 240,000 a year because of new homes and condos, addressed mail is decreasing about 1.5 per cent a year.
Canada Post spokesman Jon Hamilton said employees have some of the "best wages and benefits in Canada."
Although the company wants to pay new employees a lower wage, they would still have a competitive wage and benefits package, he said.
"Canada Post is facing declining mail volumes and declining revenue," Hamilton said. "We are committed to serving all Canadians and don't want to be a drain on the taxpayer."
If there is a strike, mail and parcels will not be delivered. However, Canada Post has an agreement with the union to continue delivering unemployment and welfare cheques, pensions and other social-assistance cheques.
The last postal strike occurred in 1997.
The Canadian Bankers Association has put up a statement on its website reminding customers that they are still responsible for making their regular payments for credit cards, mortgages and other loans even if they do not receive their statements due to a mail strike.
The association is encouraging customers to sign up for online banking.
Banking bills that are normally paid through the mail can be paid through online or telephone banking, at an ABM or at a bank branch.
