Key Takeaways:
- Canada Post and the Canadian Union of Postal Workers (CUPW) have reached tentative agreements on new contracts for Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units.
- The agreements include a 6.5% wage increase in the first year, followed by a 3% hike in the second year, and increases matching the annual inflation rate in years three through five.
- The deals also include enhanced benefits and a weekend parcel delivery model.
- The agreements are subject to ratification by CUPW members, with votes set to take place in early 2026.
- The tentative agreements bring an end to over two years of labour strife between Canada Post and its largest union, which represents about 55,000 workers.
Introduction to the Tentative Agreements
Canada Post and the Canadian Union of Postal Workers (CUPW) announced on Monday that they have reached tentative agreements on new contracts for the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. The agreements, which are subject to ratification by CUPW members, include higher wage increases and enhanced benefits. The CUPW’s national board is recommending that members accept the deals, which would bring an end to over two years of labour strife between the two parties.
Details of the Tentative Agreements
The tentative agreements include a 6.5% wage increase in the first year, followed by a 3% hike in the second year, and increases matching the annual inflation rate in years three through five. The deals also include enhanced benefits and a weekend parcel delivery model. The agreements would be in effect until January 31, 2029, and would apply to both the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. The union and Canada Post have agreed that there will be no strike or lockout action during the ratification process, which is set to take place in early 2026.
Background to the Labour Dispute
The labour dispute between Canada Post and the CUPW has been ongoing for over two years, with the two sides sparring over wages and structural changes to the postal service’s workforce. Canada Post has been seeking to introduce more part-time workers and seven-day-a-week delivery, which the union has opposed. The dispute has resulted in multiple strikes, including a disruptive strike ahead of the holidays last year. The union and company came to an "agreement in principle" about a month ago, which allowed workers to return to the job.
Financial Challenges Facing Canada Post
Canada Post has been facing significant financial challenges, with its most recent quarterly report showing a $541-million before-tax loss, the largest in its history. The company received a $1-billion federal loan at the beginning of this year, which was meant to carry it through the end of March next year. However, Canada Post now expects the loan to run out by the end of this year. The tentative agreements with the CUPW are seen as a positive step towards stabilizing the company’s finances and ensuring its long-term viability.
Reaction to the Tentative Agreements
The CUPW’s national president, Jan Simpson, welcomed the tentative agreements, saying that they 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," Simpson said. The agreements are seen as a significant achievement for the union, which has been fighting to protect the rights and interests of its members. The tentative agreements will now be put to a vote by CUPW members, who will have the final say on whether to accept the deals.
Conclusion and Next Steps
The tentative agreements between Canada Post and the CUPW mark a significant milestone in the labour dispute between the two parties. The agreements, which include higher wage increases and enhanced benefits, are subject to ratification by CUPW members. If approved, the deals would bring an end to over two years of labour strife and provide a sense of stability and security for postal workers. The agreements would also help to address the financial challenges facing Canada Post, which has been struggling to stay afloat in recent years. The next step will be for CUPW members to vote on the tentative agreements, which is set to take place in early 2026.
