Canada Post is under mounting pressure from Ottawa to break a months-long stalemate with its 55,000 workers, as Jobs Minister Patty Hajdu urges both sides to return to the bargaining table — or prepare for binding arbitration. The minister’s message comes amid growing fears of another postal disruption, six months after the last paralyzed deliveries during the holiday season.
In a statement shared on social media Wednesday, Hajdu called on the Crown corporation and the Canadian Union of Postal Workers (CUPW) to urgently pursue negotiations or agree to arbitration — warning that the federal government may be forced to intervene. While stressing that arbitration is “not the preferred path,” Hajdu made it clear Canadians expect a resolution.
“Canadians expect the parties to resolve this dispute one way or another. To do that they must meet and pursue these two paths with urgency,” she wrote on X (formerly Twitter), adding that federal mediators are ready to assist.
Canada Post said it is open to renewed talks, but added that “all options must be considered,” including forcing a union vote on its final offer. The company’s latest proposal includes a 14% wage increase over four years, ending mandatory overtime, and a $1,000 signing bonus. However, the union rejected the proposal, criticizing the vote request as a violation of collective bargaining rights.
Union president Jan Simpson countered with a call for binding arbitration but warned of internal tensions, reminding members that their dispute is with the employer, not each other. She reiterated concerns over Canada Post’s push for part-time weekend staff and a new dynamic routing system, which could change mail routes daily based on parcel volume.
With Canada Post losing $1.3 billion last year and parcel volumes down 65% compared to 2024, both sides are navigating not just labour tensions, but a deeper crisis in the postal service’s sustainability.
The union has been in a legal strike position since May 23, but has opted for an overtime ban rather than a full-scale walkout. Still, experts warn that prolonged impasse — or government-imposed arbitration — carries high stakes. According to labour studies expert Stephanie Ross, “Arbitration is always a bit risky. An arbitrator could tilt heavily in favour of one side, and both parties know that.”
As the dispute drags on, time may be running out for both sides to strike a deal before decisions are taken out of their hands.