Editor's note: This article has been updated. A previous version incorrectly stated that Canada Post employees walked off the job five years ago, but they were actually locked out by the company.

An ongoing labour dispute at Canada Post could lead to a disruption in deliveries starting next month.

Canada Post has warned major customers that a disruption could happen as early as July 2, accusing the union of preparing to strike.

"We need a more flexible model," Canada Post spokesperson Jon Hamilton told CTV News.

"We need a model that allows us to deliver on evenings and weekends and peak times without having to pay double time, which is pricing us out of the market."

Both sides are still at the bargaining table, but far apart on key issues. The union is concerned about job security and pension reform, claiming what the company really wants is a lockout.

"The union is currently conducting strike votes across the country, and we are getting prepared in the event that the employer does decide to lock us out," said Jennifer Savage of the Canadian Union of Postal Workers.

The dispute comes five years after employees were locked out over another dispute, only to be legislated back to work.

Now the current government is reviewing the postal service, including the future of home delivery, which Canada Post wants to end.

Threats of job action have local businesses like Denman Bike Shop considering a move to other courier services, though it will mean paying a higher price.

"It's incredibly concerning," accountant Rose Walker said. The business ships gear all over the country, almost exclusively with Canada Post.

"We'd either have to choose to eat some of that extra cost or unfortunately raise our shipping rates on our products."

With a report from CTV Vancouver's Scott Roberts