CANADA Post said on Wednesday that it has presented new global offers to the Canadian Union of Postal Workers (CUPW), demonstrating a commitment to reach agreements and maintain continuity of postal services for Canadians.
It said that the new offers, for the Urban and RSMC (Rural and Suburban Mail Carriers) bargaining units, go further on wage increases and would protect employees’ benefits and entitlements. The offers also reflect the Corporation’s current realities.
Canada Post said it has proposed important changes to its delivery model to increase its flexibility and help address the Corporation’s significant financial and operational challenges. Since 2018, the Corporation has recorded more than $3 billion in losses before tax, and it will post another significant loss for 2024. In early 2025, the Government of Canada announced repayable funding of up to $1.034 billion for Canada Post to prevent insolvency.
Canada Post said that building on the important work of the Industrial Inquiry Commission (IIC) and the findings and recommendations in its final report, the parties must now bring urgency to negotiations. Another labour disruption would be costly and disruptive for employees, small businesses and the millions of Canadians who rely on the postal system.
Under the new global offers, current employees would keep their:
- Defined benefit pension
- Industry leading job security provisions
- Health benefits and post-retirement benefits
- Vacation (up to seven weeks) and pre-retirement leave
- Cost of living allowance that protects against the effects of unforeseen inflation
- Work schedules
The Corporation said it has increased its wage offer. Current employees would receive wage increases of 6% in year one; 3% in year two; 2% in year three; and 2% in year four (13.59% compounded). The offers also provide employees with better income replacement for leave under the short-term disability program, and six added personal days locked into the collective agreements.
As part of the company’s commitment to reach agreements, Canada Post has withdrawn items since its last global offer. The company is no longer proposing a new health benefits plan, changes to employees’ post-retirement benefits, or enrolling future employees in the defined contribution pension.
Canada Post is proposing critical changes to its delivery model to help it compete in parcel delivery seven days a week and meet the changing needs of businesses and Canadians.
The company will create stable and predictable part-time jobs for people who are looking for flexible work. The part-time positions will provide health and pension benefits and scheduled and guaranteed hours (15 to 40 hours of work per week). The creation of part-time jobs increases the company’s delivery flexibility, especially on weekends, while ensuring that letter carriers are not required to work weekend shifts.
Canada Post is also proposing an initial, limited implementation (10 facilities) of Dynamic Routing, an industry standard used by all other major couriers. Under Dynamic Routing, delivery routes are planned and optimized daily, creating more consistent, predictable service for customers.
Future employees, hired after the signing of the new collective agreements, will receive health and pension benefits after six months of regular employment.
Negotiations process and timeline
- November 15, 2024: CUPW started a national strike, shutting down Canada Post’s operations.
- December 13, 2024: The federal Minister of Labour directed the Canada Industrial Relations Board (CIRB) to examine the impasse between Canada Post and CUPW. The Minister also created the IIC to examine the significant issues in the bargaining dispute.
- December 17, 2024: Canada Post and CUPW-represented employees resumed operations after being ordered back to work by the CIRB. The existing collective agreements between Canada Post and CUPW were extended until May 22, 2025.
- May 15, 2025: After holding hearings earlier in the year, the IIC presented its final report and recommendations to the federal government.
- May 19, 2025: Canada Post received strike notices from CUPW, indicating that the union intends to begin strike activity as of May 23, 12:00 am local time.
- May 21, 2025: Canada Post presented new global offers for CUPW-represented employees.
- May 22, 2025: The existing collective agreements expire.
- May 23, 2025: CUPW intends to begin strike activity at 12 a.m. local time, unless the parties reach agreements before then.
Canada Post employees can read the full offer details at canadapost.ca/offers.
