Canada Post employees have approved a new contract, putting an end to prolonged negotiations and disputes between the union and the Crown corporation, which included nationwide strikes. The Canadian Union of Postal Workers (CUPW), representing 55,000 postal workers, announced that the majority of its members have ratified the agreement that was tentatively reached in December 2025, with an overwhelming 85.9 percent in favor.
According to the union, approximately 86 percent of rural and suburban mail carriers voted in favor of the contract, while 89 percent of urban workers also supported it. Jan Simpson, CUPW national president, expressed satisfaction with the outcome, stating that despite challenges, postal workers were able to secure key rights such as job security and pensions, along with significant wage increases and improved benefits.
The new contract entails wage hikes of 6.5 percent in the first year, three percent in the second year, and adjustments to match the annual inflation rate in the subsequent three years. Additionally, the deal includes the implementation of a weekend parcel delivery model and enhanced benefits for employees.
The approval of the contract marks the conclusion of a series of disputes over wages and structural changes within Canada Post, during which workers resorted to strikes on multiple occasions. In response to the positive vote, Doug Ettinger, the president and CEO of Canada Post, expressed optimism, emphasizing the importance of stability to rebuild the business and enhance postal services across the country.
Employees of Canada Post cast their votes between April 20 and May 30, with an agreement in place to refrain from strikes or lockouts during the ratification process. The ratification followed the release of first-quarter financial results indicating a $205 million loss for Canada Post in the initial months of the year. In light of these financial challenges, the federal government allocated $673 million to support Canada Post for the current fiscal year.
As the postal service grapples with declining demand for mail services, it aims to modernize operations through initiatives like community mailboxes, weekend parcel delivery services, and potential post office closures. Minister Joël Lightbound hailed the contract ratification as a significant step in the restructuring efforts, emphasizing the need for a more modern and efficient postal service that continues to serve Canadians nationwide. The union, while opposing service cuts, pledges to focus on safeguarding and improving postal services for communities following the approval of the contract.