Canada Post and Workers' Union Reach Tentative Agreement to End Strikes

Post by : Mina Carter

Canada Post, along with the Canadian Union of Postal Employees (CUPW), has come to an “agreement in principle”, marking a significant step towards a new contract and the potential resolution of prolonged labor disputes.

This agreement will see CUPW pause its strike actions, while Canada Post will refrain from implementing lockouts. Jan Simpson, CUPW's national president, emphasized that while key points have been settled, the contract’s final wording still needs to be agreed upon before members can vote. The union will maintain its right to strike until the agreement is ratified.

The negotiations have been protracted over two years, featuring two national strikes and recent rotating strikes in October aimed at pressuring Canada Post. The announcement followed a troubling report from Canada Post, revealing its largest quarterly loss to date, suffering a $541 million pre-tax loss in Q3 alone, with total losses exceeding $1 billion for the year.

The organization has attributed its financial challenges to decreasing letter mail volumes, heightened competition in parcel deliveries, and ongoing strike actions. While CUPW is advocating for increased wages, benefits, and full-time guarantees for weekend parcel deliveries, Canada Post has proposed a 13% wage hike spread over four years, a figure lower than what the union has suggested in return.

With recent postal reforms introduced by the federal government—relaxing letter delivery standards, ceasing most door-to-door services, and shuttering select post offices, though ensuring continued services in rural, remote, and Indigenous communities—Canada Post is projected to need further financial assistance by early 2026 to maintain stability. Additionally, the company has announced plans to reduce its workforce and provide incentives for early retirement.

CUPW initiated its most recent strike in response to governmental changes in mail services and is still demanding a thorough public review of Canada Post's operations.

Nov. 22, 2025 4:42 p.m. 588

Canada News CNI News