Canada Post workers rallied outside their office in St. John's Friday, saying they are worried about their jobs.
Canada Post plans to open a new private retail outlet down the road from the main public postal centre.
Postal workers say they are concerned their jobs will be cut to create new ones for private industries.
Canada Post employee Mike MacDonald says the impact of privatizing parts of the postal service will be dramatic.
"Right now Canada Post is a Crown corporation, so all the profit that it makes is supposed to go back into the service to create jobs in the communities and to better the service, and to keep it affordable for people across the country," MacDonald said.
"If you keep opening up these private retail postal outlets, essentially the money is no longer going to be going into the public pocket, it's going into the pockets of a small group of private individuals."
Workers say the new private outlet will be on the corner of Kelsey Drive and Kenmount Road.