Tentative accords promise wage increases and labour peace while members prepare to vote in early 2026
Canada Post and the Canadian Union of Postal Workers (CUPW) announced Monday that they have reached tentative collective agreements, easing fears of labor disruptions at the national postal service after more than two years of strained negotiations.
The proposed deals apply to employees in both Urban Postal Operations and the Rural and Suburban Mail Carriers units. CUPW’s national board has endorsed the agreements and is urging members to approve them during ratification votes scheduled for early 2026.
Under the terms outlined by Canada Post, workers would receive a 6.5 percent wage increase in the first year, followed by a three percent raise in the second year. Wage adjustments in the third through fifth years would be tied to annual inflation. The agreements also include expanded benefits and introduce a new model for weekend parcel delivery. If ratified, the contracts would remain in force until Jan. 31, 2029.
“These results speak to the unity and determination of postal workers,” said CUPW national president Jan Simpson. “Despite unprecedented pressures, we were able to protect key gains, improve conditions, and resist major concessions.”
The announcement marks a significant step forward after the union and the Crown corporation reached a deal in principle in November. At that time, CUPW had retained the legal option to strike. Both parties now say they have agreed that no strike or lockout actions will occur while the ratification process is underway.
Canada Post also confirmed that final contract language has been completed, bringing negotiations into their final phase.
If approved next year, the agreements would bring closure to a prolonged and often bitter labor dispute involving roughly 55,000 workers. Talks had stalled repeatedly over compensation, workforce restructuring, and proposals to expand part-time staffing and seven-day delivery.
Postal employees staged multiple job actions during negotiations, including a strike just before last year’s holiday season that disrupted parcel deliveries nationwide.
The labor settlement comes as Canada Post faces mounting financial pressure. The corporation reported a before-tax loss of $541 million in its most recent quarterly filing—the largest in its history. Although it received a $1-billion federal loan in January intended to sustain operations into 2026, the company has since warned that the funds may be depleted by the end of this year.
Union leaders say the tentative agreements could bring much-needed stability to the postal system at a time when its long-term future remains under scrutiny.
