Canada Post and the Canadian Union of Postal Workers (CUPW) have announced reaching tentative agreements. The agreements, revealed on Monday, pertain to both the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. The national board of CUPW is recommending its members to accept the deals during ratification votes scheduled for early 2026.
According to Canada Post, the agreements entail a 6.5% wage increase in the initial year, followed by a 3% raise in the second year, and subsequent increases aligned with the annual inflation rate in Years 3 to 5. Additionally, the deals incorporate enhanced benefits and introduce a weekend parcel delivery model. Both agreements are set to remain effective until January 31, 2029.
CUPW national president Jan Simpson expressed satisfaction with the outcomes, attributing them to the unity and resilience of postal workers. Simpson stated, “In the face of exceptional challenges, we stood together, achieved significant enhancements, and resisted substantial setbacks.”
This recent development comes after an earlier agreement in principle was disclosed by Canada Post and CUPW in November. While the union had the option to strike previously, both parties have now agreed that strike or lockout actions will be withheld during the ratification process. Canada Post has confirmed the finalization of contractual language for the new collective agreement as part of this progress.
If the agreements are formalized in the upcoming year, it would mark the conclusion of over two years of labor disputes between the struggling Crown corporation and its primary union, representing approximately 55,000 employees. The contentious issues have revolved around salary disputes and structural adjustments within the postal service’s workforce, including proposals for increased part-time staff and seven-day delivery services.
In recent years, Canada Post has faced severe financial challenges. The company’s latest quarterly report in November reported a before-tax loss of $541 million, marking its largest loss in history. Following a $1 billion federal loan received in January to sustain operations until March, Canada Post now anticipates exhausting the funds by the year’s end.