Canada Post announced on Thursday that it has finalized new collective agreements with the Canadian Union of Postal Workers (CUPW). The agreement, which covers 55,000 postal workers, was approved by CUPW members on June 1 after a majority vote, marking the end of a prolonged period of negotiations and strikes that raised concerns about the future of the Crown corporation.
A Canada Post representative stated that the newly established agreements bring stability and pave the way for collaboration with employees and bargaining agents to revitalize the business, rebuild trust in the postal service, and enhance its service across the country. The terms of the deal include a 6.5% wage increase in the first year, followed by 3% in the second year, with subsequent increases aligned with the annual inflation rate for the next three years. Additionally, the agreement introduces a weekend parcel delivery system and enhanced benefits for employees.
CUPW reported that a significant majority of rural and suburban mail carriers (86%) and urban workers (89%) voted in favor of the agreement, which is set to remain in effect until January 31, 2029. Canada Post emphasized the importance of the agreement as the corporation embarks on a multi-year transformation aimed at achieving financial sustainability and better addressing the evolving needs of the country.
Despite efforts to reduce costs, Canada Post reported a loss of $205 million in the first quarter of this year, reflecting ongoing challenges in competing with private courier services. The corporation has implemented cost-cutting measures such as phasing out door-to-door delivery, a decision that has faced opposition from the union.
