Key Takeaways
- Canada Post and the Canadian Union of Postal Workers (CUPW) have reached tentative agreements on new collective bargaining agreements
- 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 3-5
- The deals also include enhanced benefits and a weekend parcel delivery model
- The agreements would be in effect until January 31, 2029, and would cover both Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units
- The CUPW’s national board recommends that members accept the deals during ratification votes set to be held in early 2026
Introduction to the Tentative Agreements
The Canadian Union of Postal Workers (CUPW) and Canada Post have announced that they have reached tentative agreements on new collective bargaining agreements. The agreements, which were announced on Monday, cover both the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units. The CUPW’s national board has recommended that members accept the deals during ratification votes set to be held in early 2026. The agreements include a range of provisions, including wage increases, enhanced benefits, and a weekend parcel delivery model.
Details of the Agreements
According to Canada Post, 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 3-5. The deals also include enhanced benefits and a weekend parcel delivery model. The agreements would be in effect until January 31, 2029. The CUPW’s national president, Jan Simpson, stated that the agreements reflect the strength and solidarity of postal workers, and that the union had secured meaningful improvements and pushed back on significant rollbacks.
Background to the Negotiations
The announcement of the tentative agreements comes after more than two years of labour strife between Canada Post and the CUPW, which represents approximately 55,000 workers. The two sides have sparred over wages and structural changes to the postal service’s workforce, including proposals to introduce more part-time workers and seven-day-a-week delivery. Postal workers have taken to the picket line on multiple occasions during the bargaining process, including a strike ahead of the holidays last year that upended parcel delivery during peak season.
Financial Challenges Facing Canada Post
Canada Post has been in dire financial straits for years, with its most recent quarterly report in November including a $541-million before-tax loss, the largest in its history. The carrier received a $1-billion federal loan in January that was meant to carry it through to next March, but it now expects the loan to run out by the end of the year. The financial challenges facing Canada Post have added to the complexity of the negotiations with the CUPW, and the tentative agreements announced on Monday represent a significant step forward in addressing these challenges.
Reaction to the Tentative Agreements
The reaction to the tentative agreements has been cautiously optimistic, with the president of the CUPW’s Toronto local, Mark Lubinski, stating that he is "optimistic" and "confident" that there is something in the agreements that members can ratify. The CUPW’s national president, Jan Simpson, has also welcomed the agreements, stating that they reflect the strength and solidarity of postal workers. However, the agreements still need to be ratified by CUPW members, and it remains to be seen whether they will be accepted.
Conclusion and Next Steps
The tentative agreements announced on Monday represent a significant step forward in the negotiations between Canada Post and the CUPW. The agreements include a range of provisions that address the concerns of postal workers, including wage increases, enhanced benefits, and a weekend parcel delivery model. However, the agreements still need to be ratified by CUPW members, and it remains to be seen whether they will be accepted. If the agreements are finalized in the new year, it would cap off more than two years of labour strife between the ailing Crown corporation and its largest union, and would provide a sense of stability and certainty for postal workers and the wider community.
