Canada Post and the Canadian Union of Postal Workers (CUPW) say they have reached tentative collective agreements, paving the way for ratification votes expected in early 2026.
The agreements, announced Monday, cover both the Urban Postal Operations unit and the Rural and Suburban Mail Carriers bargaining unit. CUPW’s national board is recommending members approve the deals.
“These outcomes reflect the strength and solidarity of postal workers,” CUPW national president Jan Simpson said in a statement. “In the face of extraordinary challenges, we stood together, secured meaningful improvements and pushed back on significant rollbacks.”
Both the union and the Crown corporation said there will be no strike or lockout action while members consider the agreements during the ratification process.
Canada Post said the tentative contracts include a 6.5 per cent wage increase in the first year, followed by a three per cent increase in the second year. Wages would then rise in line with annual inflation in years three through five. The deals also include enhanced benefits and the introduction of a weekend parcel delivery model.
If ratified, both agreements would run until Jan. 31, 2029.
Finalizing the contracts would mark the end of more than two years of labour unrest between Canada Post and its largest union, which represents about 55,000 workers. The two sides have clashed over wages and proposed structural changes to the workforce, including plans to add more part-time positions and expand delivery to seven days a week.
Postal workers have staged several strikes during the negotiations, including a disruptive walkout ahead of last year’s holiday season. Employees returned to work about a month ago after the union and the company reached what was described as an “agreement in principle.”
The tentative deals come as Canada Post continues to face significant financial challenges. In its most recent quarterly report released in November, the corporation reported a before-tax loss of $541 million — the largest in its history.
Canada Post also received a $1-billion federal loan earlier this year, intended to sustain operations through the end of March 2026. The corporation has since said it now expects those funds to be exhausted by the end of this year.