Five-Year Agreements Approved by Overwhelming Majority as Canada Post Faces $5.4 Billion in Losses and Plans Major Modernization Efforts
CANADA – Postal workers across Canada have voted overwhelmingly in favour of new five-year collective agreements with Canada Post, ending more than two years of labour uncertainty and avoiding the threat of another nationwide strike.
The Canadian Union of Postal Workers (CUPW) announced that 85.9 per cent of Rural and Suburban Mail Carriers (RSMC) members and 89 per cent of Urban Operations members voted in favour of the agreements, providing labour stability through January 2029.
The ratification marks the conclusion of a lengthy period of labour unrest that included multiple nationwide and rotating strikes, creating significant disruptions for businesses, consumers and communities across the country.
Under the new agreements, approximately 53,000 postal workers will receive a wage increase of 6.5 per cent in the first year of the contract, including a previously granted five per cent increase, followed by a three per cent increase in the second year. Wage increases in the remaining three years will be tied to annual inflation rates based on the Consumer Price Index.
The agreements come at a critical time for Canada Post as the Crown corporation struggles with mounting financial challenges. Canada Post has reported cumulative losses of nearly $5.4 billion between 2018 and 2025, raising serious concerns about the long-term sustainability of the national postal service.
Last month, the federal government approved financial assistance of up to $673 million to help Canada Post meet its operational requirements through March 2027 while it undertakes significant modernization efforts.
Canada Post President and Chief Executive Officer Doug Ettinger welcomed the ratification vote and emphasized the importance of stability as the organization moves forward with transformation initiatives.
“With the stability of new agreements in place, we look forward to working with our employees and bargaining agents to rebuild the business, restore confidence in the postal system and better serve the country,” said Ettinger.
He noted that the agreements recognize the need for change and will help support affordable weekend parcel delivery while allowing operational adjustments necessary to improve efficiency and long-term sustainability.
Among the most significant changes planned is the continued expansion of community mailboxes across Canada. Canada Post has confirmed that approximately four million additional homes may eventually transition from door-to-door mail delivery to community mailbox service.
As part of the next phase, approximately 48,000 households in Ottawa and Etobicoke are expected to lose door-to-door delivery service by late 2026 or early 2027 and transition to community mailboxes.
The modernization plan also includes authority to reduce daily letter mail delivery, close certain rural post offices and adjust retail operations as Canada Post responds to declining mail volumes and increased competition in parcel delivery.
While the majority of CUPW’s national executive supported the agreements, CUPW National President Jan Simpson had urged members to reject the offers earlier this year, expressing concerns about long-term impacts on workers and the public postal service.
Following the vote, Simpson acknowledged the outcome and called on members to remain united as future challenges emerge.
“We still have our work cut out for us. To win the fights ahead, prepare for the next round of bargaining and mobilize against the government’s attacks on our public postal service, we all have to regroup and unite in our struggle,” she said.
Industry analysts estimate Canada Post could ultimately eliminate between 10,000 and 30,000 positions over the next decade as modernization efforts continue, although the corporation has not released specific workforce reduction targets.
For Canadians, the ratification brings certainty and avoids the possibility of another national postal disruption while allowing Canada Post to proceed with reforms aimed at ensuring the long-term viability of one of the country’s most important public services.
The agreements represent a significant turning point for Canada Post as it balances the need to modernize operations, maintain service standards and preserve good-paying jobs while addressing substantial financial pressures in an increasingly digital economy.