Canada Post employees have approved a new contract, putting an end to prolonged disputes and negotiations between the union and the Crown corporation, which included nationwide strikes. The Canadian Union of Postal Workers (CUPW), representing 55,000 postal workers, revealed that the majority of its members voted in favor of the agreement reached in December 2025, with an overwhelming 85.9 percent supporting it. Among the workers, about 86 percent of rural and suburban mail carriers endorsed the contract, while 89 percent of urban workers also gave their approval.
Jan Simpson, CUPW national president, expressed satisfaction with the outcome, stating that despite facing challenges, postal workers achieved positive results by preventing significant cutbacks proposed by Canada Post. The agreements safeguard essential rights such as job security and pensions, along with providing notable wage increases, improved benefits, and fair pay for all hours worked by rural and suburban mail carriers. The deal encompasses wage hikes of 6.5 percent in the first year, three percent in the second year, and subsequent increases tied to the annual inflation rate for the following three years. Additionally, the agreement includes the implementation of a weekend parcel delivery model and enhanced benefits for the workers.
Years of contention between Canada Post and the union regarding wage disputes and postal service structural changes have now been resolved with this affirmative vote. Canada Post’s President and CEO, Doug Ettinger, welcomed the decision, emphasizing the importance of the new agreements in fostering collaboration to enhance postal service quality and rebuild trust with customers. Employees participated in the ratification vote from April 20 to May 30, with both parties refraining from any labor actions during the voting period. The deal also saw the union leadership divided in their recommendations, with 60 percent of the national executive board advocating for ratification while Simpson and four other leaders issued a minority report urging workers to reject the agreement due to concerns on compensation and worker rights.
The ratification follows Canada Post’s first-quarter financial results indicating a loss of $205 million in the initial three months of the year. To alleviate financial pressures on the postal service, the federal government allocated $673 million to Canada Post for the current fiscal year. Facing challenges from declining mail demands, Canada Post aims to modernize its operations through various reforms, including the introduction of community mailboxes, weekend parcel delivery services, and potential post office closures.
Minister of Government Transformation, Public Works, and Procurement Joël Lightbound hailed the ratification as a significant advancement in Canada Post’s restructuring efforts. He asserted that the corporation and its employees can now collaborate to enhance and modernize postal services across the country. As part of the restructuring plan, some addresses will see the end of door-to-door delivery, with an expansion of community mailboxes. Despite these changes, the union remains opposed to service cuts and pledges to focus on supporting communities in enhancing and expanding postal services following the ratified agreement.