Canada Post and union representing workers reach tentative agreement, agree not to strike

Canada Post and the Canadian Union of Postal Workers (CUPW) say they have reached tentative agreements.

The agreements announced Monday cover both the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units.

CUPW's national board recommends members accept the deals during ratification votes set to be held in early 2026.

Canada Post said the deals include a 6.5 per cent wage increase in the first year, followed by a three per cent hike in the second year and increases matching the annual inflation rate in Years 3 through 5. They also include enhanced benefits and a weekend parcel delivery model. Both agreements would be in effect until Jan. 31, 2029.

"These outcomes reflect the strength and solidarity of postal workers," CUPW national president Jan Simpson said.

"In the face of extraordinary challenges, we stood together, secured meaningful improvements and pushed back on significant rollbacks."

The Monday announcement comes after Canada Post and CUPW announced a deal in principle in November. While the union retained the right to strike at that time, the union and the Crown corporation now say they've agreed strike or lockout action will not take place during the ratification process.

The parties have also "finalized contractual language" for the new collective agreement, according to Canada Post, as part of this next step.

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, which represents about 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 in the bargaining process, including with a strike ahead of the holidays last year that upended parcel delivery during peak season.

Canada Post has been in dire financial straits for years. Its most recent quarterly report in November included a $541-million before-tax loss, the largest in its history. It received a $1-billion federal loan in January that was meant to carry it through to next March, but the carrier now expects it to run out by the end of the year.