Canada Post and Canadian Union of Postal Workers reach tentative agreement

By David Hartwig

The Canadian Union of Postal Workers will suspend strike and lockout activity while union members vote on tentative agreements reached between the union’s executive board and Canada Post, both parties announced Dec. 22.

The union’s executive board is recommending members vote in favor of the agreements, according to a Dec. 22 statement from union negotiators Lana Smidt and Francois Senneville.

The tentative deal includes wage increases in the first two years, followed by raises tied to inflation for the remainder of the contracts. The defined benefit pension plan would remain unchanged. Both sides also cited improvements to employee benefits, including changes to health coverage and short-term disability provisions, as well as enhanced income replacement for employees injured on the job.

The agreement would maintain existing job-security protections for urban employees and strengthen protections for rural and suburban carriers. It also preserves protections for 393 corporate post office retail counters nationwide.

Operational changes outlined in the proposed agreements include new staffing models to support weekend parcel delivery and other adjustments to work scheduling. For rural and suburban carriers, the deal would also transition employees to an hourly pay system.

The proposed agreements would run for five years, through Jan. 31, 2029, and are subject to ratification by union members in a vote expected to begin after contractual language is finalized by Jan. 16.

The tentative agreements follow a prolonged and often contentious round of bargaining between Canada Post and the Canadian Union of Postal Workers. The parties exchanged proposals throughout the summer after earlier offers from Canada Post were rejected by union members, and the union escalated job action in September, citing a lack of progress at the bargaining table.

Labor disruptions during the dispute included a national overtime ban, a ban on the delivery of unaddressed direct mail, and a brief nationwide strike that transitioned into rotating strikes in October. Canada Post said the rotating strikes disrupted its national network and led to the suspension of service guarantees, while the union said the approach was intended to maintain pressure on the employer while limiting impacts on the public and postal workers.

The negotiations took place against the backdrop of contracts that had already been extended following a strike in late 2024, which ended after a back-to-work order from the Canada Industrial Relations Board. The tentative agreements would bring that extended labor dispute to a close, pending ratification by union members.

Canada Post provides details of its offers to the union online at canadapost.ca/offers and provides negotiation updates online at www.canadapost.ca/update. The latest news from the Canadian Union of Postal Workers can be found online at www.cupw.ca/en/news---events.

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