When you apply for a passport, you can arrange to pick it up instead of having it mailed (currently for a fee of $20). The pickup has to be done at a passport office (or maybe some select Service Canada locations???), which are in major cities (and some not so major, like Kelowna).
I used to work within walking distance of a passport office. In those days there was no extra fee for picking up your passport, and I never had mine mailed. Heck, I once picked up a co-workers passport when she was very frazzled and in a time crunch! She gave me the receipt and a note authorizing me to pick it up for her. We weren't sure it was going to work, but thought it was worth a try, and it did!
The people who are having passport issues are those who live far from the nearest passport office and those whose passports were slated for mailing, but didn't arrive before the strike. I believe the passport offices are holding a bunch of them, and will try to find yours if it is in limbo and is needed urgently (for a fee, of course!).
If the passport was actually mailed but didn't arrive, the picture is much grimmer.