Canada Post Reaches Tentative Labor Agreements with Postal Workers Union

Canada Post has reached tentative labor contract agreements with the Canadian Union of Postal Workers (CUPW), marking a significant step toward resolving a prolonged and disruptive negotiation process.

The tentative agreements—one covering urban postal workers and another for rural and suburban mail carriers—must now be ratified by CUPW-represented employees before they take effect. The union will oversee the ratification vote. During this period, both parties have agreed to refrain from any strike or lockout activity, according to a Canada Post statement.

Labor disruptions over the past year had posed challenges for Canada Post’s operations, prompting some shippers to divert volumes to alternative delivery providers to avoid potential delays. Key issues in the negotiations included wage increases and changes to delivery operations.

According to Canada Post, the proposed agreements include higher wage increases, enhanced benefits, and the introduction of a weekend parcel delivery model. Both contracts would run for five years, remaining in effect until January 31, 2029.

Under the tentative terms, wages would increase by 6.5% in the first year and 3% in the second year. In the following three years, wage increases would be tied to the annual inflation rate as measured by the Consumer Price Index.

Canada Post and CUPW had previously indicated that agreements were nearing completion after reaching agreements in principle last month, pending finalization of contract language. CUPW negotiators stated that the remaining outstanding items relate to short-term disability benefits and personal days, with final language expected to be completed by January 16.

The ratification vote will take place once all contractual language is finalized. CUPW said additional details on the proposed changes and voting process will be shared in the coming days, and noted that the union’s National Executive Board is recommending members vote in favor of the tentative agreements.