Canada Post and the Canadian Union of Postal Workers (CUPW) have announced reaching tentative agreements. These agreements, disclosed on Monday, are for the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. The national board of CUPW has recommended that members accept the deals through ratification votes scheduled for early 2026.
The agreements entail a 6.5% wage increase in the first year, followed by a 3% raise in the second year, with subsequent increases aligned with the annual inflation rate for Years 3 to 5. They also include improved benefits and the implementation of a weekend parcel delivery system. Both deals are set to remain effective until January 31, 2029.
Jan Simpson, the national president of CUPW, emphasized that these outcomes showcase the unity and resilience of postal workers. She stated, “In the face of exceptional challenges, we united, achieved substantial enhancements, and resisted significant cutbacks.”
The recent announcement follows a preliminary agreement made by Canada Post and CUPW in November. While the union had the right to strike at that time, both parties have now agreed that strike or lockout actions will be suspended during the ratification process. Additionally, Canada Post mentioned that they have finalized the contractual language for the new collective agreement as part of this progression.
If these agreements are formalized in the coming year, it will 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 disagreements have revolved around salary issues and structural adjustments to the postal service’s workforce, encompassing proposals for increased part-time staff and seven-day delivery services.
During the bargaining phase, postal workers have engaged in strikes, including one before the holiday season last year, disrupting parcel deliveries during peak periods. Canada Post has been facing financial challenges for a prolonged period, with its latest quarterly report in November reporting a before-tax loss of $541 million, the largest in its history. Despite receiving a $1 billion federal loan in January to sustain operations until March, the carrier now anticipates exhausting the funds before the year concludes.