Canada Post and the Canadian Union of Postal Workers (CUPW) have announced that they have reached tentative agreements. The agreements, revealed on Monday, pertain to the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. CUPW’s national board is urging its members to accept the deals during upcoming ratification votes scheduled for early 2026.
Under the terms of the agreements, there will be a 6.5% salary increase in the first year, followed by a 3% raise in the second year, with subsequent raises matching the annual inflation rate in Years 3 through 5. Additionally, the deals feature improved benefits and the implementation of a weekend parcel delivery model. Both agreements are set to remain in effect until Jan. 31, 2029.
CUPW national president Jan Simpson expressed satisfaction with the outcomes, attributing them to the unity and resilience of postal workers. Simpson highlighted the collective efforts that led to significant advancements and a resistance against substantial cutbacks.
The recent announcement follows a previous agreement in principle between Canada Post and CUPW, disclosed 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. Moreover, Canada Post stated that the parties have finalized the contractual language for the new collective agreement as part of the next phase.
If the agreements are formally ratified in the upcoming year, it will mark the conclusion of over two years of labor disputes between the financially struggling Crown corporation and its major union, representing approximately 55,000 employees. Key points of contention have included wage disputes and proposed structural adjustments to the postal service’s workforce, such as the introduction of more part-time staff and the potential for seven-day delivery.
During the negotiation process, postal workers have engaged in strike action on multiple occasions, including a strike prior to the holiday season last year, causing disruptions to parcel deliveries during the peak period.
Canada Post has faced significant financial challenges for an extended period, with its most recent quarterly report in November revealing a historical before-tax loss of $541 million. To address its financial woes, the corporation received a $1 billion federal loan in January, initially intended to sustain operations until March, but is now projected to be depleted by the year’s end.