Canada Post and the Canadian Union of Postal Workers (CUPW) have announced reaching tentative agreements. The agreements, disclosed on Monday, pertain to both the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. The national board of CUPW has recommended members to accept the deals during ratification votes scheduled for early 2026.
Under these agreements, there is a proposed 6.5% wage increase in the first year, followed by a 3% hike in the second year, and subsequent raises tied to the annual inflation rate in Years 3 through 5. Additionally, the deals encompass enhanced benefits and the introduction of a weekend parcel delivery system. Both agreements are slated to remain effective until January 31, 2029.
CUPW’s national president, Jan Simpson, expressed satisfaction with the outcomes, attributing them to the perseverance and unity of postal workers. Simpson remarked, “In the face of extraordinary challenges, we stood together, secured meaningful improvements, and pushed back on significant rollbacks.”
This recent development follows the initial announcement of a deal in principle between Canada Post and CUPW in November. While the union had the strike mandate at that time, both parties have now agreed that strike or lockout actions will be withheld during the ratification phase. Canada Post has confirmed the finalization of contractual language for the new collective agreement as part of this advancement.
If the agreements are ultimately ratified in the upcoming year, it would bring an end to over two years of labor disputes between the struggling Crown corporation and its primary union, representing approximately 55,000 employees. The contentious issues revolved around wage disputes and proposed structural changes within the postal workforce, including the integration of more part-time staff and the potential implementation of seven-day delivery services.
The financial woes of Canada Post have been evident for some time, with the most recent quarterly report in November revealing a substantial before-tax loss of $541 million, marking its largest loss in history. To alleviate its financial strain, the corporation received a $1 billion federal loan in January, initially intended to sustain operations until next March, but now anticipated to be depleted by the year’s end.
