Canada Post has issued what it calls its “best and final” offers to the Canadian Union of Postal Workers (CUPW), but union officials are pushing back, calling the move a refusal to negotiate on key issues.
The Corporation returned to the bargaining table on May 28 with revised offers for both the Urban and Rural and Suburban Mail Carrier (RSMC) bargaining units. The update comes amid a nationwide overtime ban that CUPW enacted on May 23 as a form of legal strike activity. Roughly 55,000 postal workers are affected, limited to eight-hour workdays and 40-hour workweeks.
Canada Post said the latest proposals build on its May 21 offers and act on key recommendations from the Industrial Inquiry Commission (IIC), which warned earlier this year that the postal service is in an “existential crisis.” The IIC concluded that the Corporation is “effectively insolvent” and urged both parties to pursue substantial reforms.
(See related story on this website: Canada Post reported a pre-tax loss of $841 million in 2024 – marking its seventh straight year in the red.)
HIGHLIGHTS OF CANADA POST’S FINAL OFFER
The final offer retains previously proposed wage increases of six per cent in year one, followed by three, two, and two per cent over the next three years – totalling a compounded 13.59 per cent. Other new elements include:
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A $1,000 signing bonus for most urban employees ($500 for others)
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Cost-of-living allowance triggered at 7.16 per cent inflation
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Continued per-piece payments for Neighbourhood Mail until 2030
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Elimination of compulsory overtime
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New part-time positions with guaranteed hours (15–40 per week), health and pension benefits
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Limited rollout of Dynamic Routing in 10 facilities
Canada Post said the proposal protects core benefits that employees value, including a defined benefit pension, job security, extended vacation entitlements, and post-retirement health coverage. It also confirmed the withdrawal of earlier proposals to change health plans or alter pension eligibility for new hires.
The Corporation emphasized the urgency of reaching a deal, citing a 65 per cent year-over-year drop in parcel volumes since the strike activity resumed. The steep decline comes on the heels of a $1.034 billion federal loan package announced earlier this year to prevent insolvency.
CUPW PRESIDENT REJECTS FRAMING OF FINAL OFFER
Despite the Corporation’s claims, CUPW National President Jan Simpson criticized the May 28 proposal, saying it contains “almost no changes” from the earlier May 21 offer and ignores key union priorities. “Canada Post is not negotiating,” Simpson said in a union update. “Canada Post is playing hardball.”
The union took particular issue with Canada Post’s insistence that “part-time flex staffing,” “weekend delivery,” “load-levelling,” and “dynamic routing” are “non-negotiable.” Simpson described these as among the most contentious items in the current round of bargaining.
CUPW also noted that the offer failed to include any improvements for Group One staffing, address concerns over contracting out, or incorporate the union’s suggested amendments to the short-term disability program (STDP).
“Canada Post says this was its final offer. But this fight is far from over,” Simpson stated, thanking members for their continued support and solidarity.
TALKS CONTINUE AMID OPERATIONAL PRESSURE
While no rotating strikes or full work stoppages have been announced, the overtime ban remains in effect. CUPW continues to advise members to follow the current limits and stay in communication with local union representatives.
Both sides have said they remain open to working with mediators, but the path forward is increasingly uncertain. With financial pressures mounting and parcel volumes sharply down, the outcome of these talks could shape the future of Canada Post’s workforce, delivery model, and role in Canada’s broader communications infrastructure.