Canada Post and the Canadian Union of Postal Workers (CUPW) have announced that they have reached tentative agreements on new labor contracts. This could put an end to a labor dispute that has lasted more than two years.
The agreements are two five-year deals — one for urban workers and one for rural and suburban workers, according to Global News.
When will the ratification vote take place?
CUPW has announced that the vote to ratify the preliminary agreements will take place early in the new year. The union leadership is calling on members to support the agreements.
Union President Jan Simpson said the agreements:
- provide for wage increases,
- include inflation protection,
- improve social benefits,
- guarantee job security.
According to her, the agreements should ensure stability for the next five years — both for workers and for communities across Canada.
What the new contracts provide for
Salary increases and “inflation protection”
According to Canada Post's statement, the terms of remuneration are as follows:
- +6.5% in the first year
- +3% in the second year
- in the following three years — an annual increase at the rate of inflation according to the consumer price index (CPI)
Thus, wages will be protected from inflation-induced depreciation throughout the five years.
Social benefits and job security
Key social provisions include:
- All employees will receive an improved health benefits plan.
- for rural and suburban workers — enhanced job security guarantees;
- for urban workers — preservation of existing employment protection mechanisms.
Weekend parcel delivery
A separate set of agreements concerns a new operational model for weekend parcel delivery. This was one of the most contentious issues in the negotiations.
However, the details of the model have not yet been made public.
Post offices
It is also reported that the number of corporate post offices protected from closure will be adjusted to 393.
What, according to the union, was avoided
CUPW states that the union managed to block key concessions demanded by Canada Post. In particular:
- the current pension plan for current and future employees has been retained;
- no significant changes have been made to work schedules and work processes that could negatively affect employees and their families.
Why the negotiations were so difficult
The negotiations have been ongoing since November 2023 and have been accompanied by high tensions, both due to the company's financial situation and the scale of the strikes.
Canada Post's financial situation
The company has repeatedly emphasized that:
- the volume of paper mail is steadily declining;
- competition from private delivery services is increasing;
- last year, the company lost more than $1 billion;
- even greater losses are expected this year.
Strikes and their consequences
During the negotiations, there were:
- two nationwide strikes;
- a multi-week strike during last year's winter holiday season;
- losses for Canada Post and small businesses estimated at hundreds of millions of dollars.
Government changes and possible closures
After the government announced measures to support the company, workers went on strike again in the fall. Among the proposed changes were:
- lower standards for letter delivery;
- a more complete transition to community mailboxes;
- the possibility of closing some post offices in areas that have become suburbs or cities over time.
The federal government and Canada Post assure that services in rural, remote, and Indigenous communities will be maintained. The plan to implement the changes is currently under review by the government.
Summary
- Canada Post and CUPW have agreed on preliminary five-year contracts
- Salaries will increase: 6.5% + 3%, then according to CPI (inflation)
- Social benefits and employment guarantees will improve
- The pension plan will be maintained
- A new model for weekend parcel delivery is planned
- Ratification is expected at the beginning of the new year