Canada Post and the Canadian Union of Postal Workers (CUPW) have finalized tentative collective agreements for both urban and rural mail carriers, bringing an end to a prolonged period of labour uncertainty and avoiding further strike or lockout action during the upcoming ratification process. These tentative contracts, if approved by union members, would run for five years and extend through early 2029.

The new deals include notable wage increases and enhanced benefits for workers. In the first year, employees would receive a 6.5 per cent salary increase (including previously awarded adjustments), with a 3 per cent increase in the second year. For years three through five, wage growth would generally align with annual inflation, as measured by the Consumer Price Index. Additional improvements include expanded health benefits, more favourable income replacement for short-term disability and injury leave, and increased personal days, giving workers a total of 13 days for personal use over the course of the agreement.

A feature of the agreements is a new operating model to support weekend parcel delivery, reflecting changes in parcel volumes and consumer expectations. Canada Post and CUPW both agreed that no strike or lockout activity will occur while members vote on ratification, helping ensure continuity of service during the holiday season and into the new year.

The tentative deal follows more than a year of negotiations marked by rotating strike actions, labour disruptions, and government involvement as both sides sought to bridge differences over wages, benefits, job security, and operational changes. Postal workers had previously walked off the job in rotating strikes and other labour actions, which contributed to service slowdowns and challenges for businesses dependent on Canada Post deliveries.

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Union leadership is now preparing for ratification votes, where CUPW members will decide whether to accept the tentative agreements. The union has signaled its support for the deals and encouraged members to vote in favour, while management emphasizes the importance of these agreements in stabilizing operations and providing a predictable labour framework for future planning.

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If ratified, the new contracts would end a significant chapter in Canada Post’s recent labour history and help restore confidence among employees and customers alike. The successful negotiations also reflect a compromise between preserving employee rights and addressing the financial and operational realities facing the country’s national postal service.