Canada Post and the Canadian Union of Postal Workers (CUPW) have announced tentative agreements covering both Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. The deals, which include a 6.5% wage increase in the first year, followed by a 3% hike in the second year and subsequent increases matching the annual inflation rate in Years 3 through 5, are recommended for acceptance by CUPW’s national board. Additionally, the agreements feature enhanced benefits, a weekend parcel delivery model, and would be effective until January 31, 2029.
CUPW national president Jan Simpson expressed satisfaction with the agreements, stating, “These outcomes reflect the strength and solidarity of postal workers. In the face of extraordinary challenges, we stood together, secured meaningful improvements and pushed back on significant rollbacks.”
This development follows a deal in principle announced in November, with both parties agreeing that strike or lockout action will not occur during the ratification process. Canada Post confirmed that the parties have finalized contractual language for the new collective agreement as part of this milestone.
If finalized in the new year, these agreements would mark the conclusion of over two years of labor disputes between the financially struggling Crown corporation and its largest union, representing approximately 55,000 workers. The contentious issues have revolved around wages and structural changes to the postal workforce, including the potential introduction of more part-time employees and seven-day-a-week delivery.
Amidst the labor unrest, Canada Post faced significant financial challenges, recording a $541 million before-tax loss in its most recent quarterly report, the largest in its history. The corporation had obtained a $1 billion federal loan in January to sustain operations until next March, but now anticipates exhausting the funds before year-end.