Canada Post presented revised offers to the Canadian Union of Postal Workers (CUPW) on Oct. 29, describing the move as part of its efforts to prevent a looming labour disruption amid mounting financial losses.
The national postal service reported a $490-million operational loss in the first half of 2024 alone, adding to cumulative losses of more than $3 billion since 2018. Facing rising competition in the parcel delivery market, Canada Post says it’s committed to negotiating terms that balance employee needs with financial and operational realities.
The latest offer includes wage increases amounting to 11.5 per cent over four years (compounded to 11.97 per cent), along with protections for key employee benefits. Canada Post also confirmed its commitment to preserving the defined benefit pension for current employees. These enhanced terms follow CUPW’s announcement of a strike mandate from members across both Urban and Rural and Suburban Mail Carrier (RSMC) units, signaling widespread union support for job security and benefit preservation. Union leaders contend, however, that Canada Post’s offer fails to fully address broader concerns around employee protections and working conditions, particularly the shift to an hourly rate for RSMC workers under the proposed terms.
In an attempt to bridge remaining gaps, Canada Post said it would support CUPW’s push to merge Urban and RSMC bargaining units, an initiative CUPW has long advocated for, citing the unique challenges faced by rural and suburban carriers. Additionally, the corporation proposed binding-interest arbitration on several unresolved items, inviting a third-party arbitrator to determine outcomes on these key issues if negotiations reach an impasse.
Canada Post has emphasized the need for a more “flexible and affordable” delivery model to meet customer demands for seven-day delivery, particularly during peak periods. This push has raised union concerns that the corporation may seek changes in staffing or workloads to achieve cost efficiencies. Union representatives argue these changes could jeopardize job security and reduce full-time positions. Canada Post counters that the adjustments are essential for it to compete in a rapidly evolving market where private carriers dominate and meet the growing expectations of Canadian consumers.
Should an agreement not be reached by the end of the cooling-off period on Nov. 2, either side could initiate a labour disruption as early as Nov. 3, provided a 72-hour notice is issued. The timing is critical as the postal service heads into the holiday season, when service demands peak, and a disruption could lead many Canadians to seek alternative delivery options. Canada Post has warned that a shift in customer loyalties could further erode its financial stability.
To mitigate potential disruptions, the federal government appointed mediators on Oct. 15 to support the negotiations, underscoring the broader economic impact a strike could have.