Canada Post signs deal with union, ends years of labour uncertainty

Canada Post and the Canadian Union of Postal Workers have signed new collective agreements, ending years of labour uncertainty and turmoil as the parties tried to reach a new deal.

This comes after the union gave the contracts the green light at the end of May, with more than 85 per cent approval of its roughly 55,000 workers.

Canada Post and the union have long sparred over wages and structural changes to the postal service, with workers taking to the picket line on multiple occasions throughout the bargaining process.

“Canada Post and the Canadian Union of Postal Workers (CUPW) have signed the new collective agreements, bringing the bargaining process to a close,” Canada Post said in an emailed statement.

“The new collective agreements for the Urban and RSMC bargaining units remain in place until Jan. 31, 2029. As part of the ratification process, CUPW-represented employees recently voted to accept the tentative agreements reached by the parties.”

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The agreement includes wage increases of 6.5 per cent and three per cent in the first two years.

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Canada Post says it also includes enhanced health benefits and leave provisions while protecting the defined pension and will “continue to protect employees’ job security.”

Canadians and businesses alike were faced with uncertainty amid the multi-year back-and-forth negotiations and labour disruptions. This led many business owners to seek alternative delivery options for fear that parcels may not arrive in a timely manner — especially during the holidays.

In the days leading up to the final union vote on the agreement, Canada Post reported a quarterly loss of more than $200 million. The Crown corporation has been struggling to return to profitability amid heightened competition and changing customer demands.

At the end of 2025, Canada Post’s president and CEO, Doug Ettinger, said he expects the company to “break even” by 2030.

As part of Canada Post’s efforts to modernize the postal service, it’s doing away with some door-to-door delivery in favour of more community mailboxes through 2026 and into 2027. The company is also transitioning to offer weekend deliveries.

“The new agreements also recognize that Canada Post needs to change, with measures such as an affordable weekend delivery model supporting our transformation,” Canada Post said.

“Having these new agreements in place is critical as we move ahead with a multi-year transformation to return to financial sustainability and better meet the modern needs of the country.”

The CUPW confirmed the signing of the agreement in a statement.

“The parties proceeded to the signing of the Urban and RSMC collective agreements on June 18th, 2026. Both collective agreements will be in full force and effect until Jan. 31st, 2029,” said the CUPW.

“After this day, the rights set out in the collective agreements continue to apply. Members will have the right to the same working conditions, wages, and benefits as they had before expiry.”

— with a file from The Canadian Press