Canada Post has declined a proposal by the Canadian Union of Postal Workers (CUPW) to delay a potential strike, pushing the union to decide quickly on a newly tabled offer before labour action begins this Friday.
Union negotiator Jim Gallant said CUPW had asked for a two-week pause to review the new proposal, but Canada Post refused, emphasizing the need for a swift resolution.
The Crown corporation submitted its latest offer earlier today, just days before what could become the second strike in less than six months. The proposal covers both urban and rural-suburban units, including:
- A 13.59% wage increase over four years: 6% in year one, 3% in year two, and 2% in each of the final two years,
- Six personal days enshrined in the collective agreement,
- Improved short-term disability benefits.
Spokesperson Lisa Liu added that Canada Post is also proposing structural changes to its delivery model to boost flexibility and address ongoing financial challenges.
In a notable shift, Canada Post has withdrawn several earlier proposals — including a new health benefits plan, changes to post-retirement benefits, and a move to place new employees in a defined-contribution pension plan.
The offer comes after Canada Post paused contract talks last week. CUPW, which represents about 55,000 postal workers, said it is carefully reviewing the latest terms.
“Canada Post walked away from the bargaining table for the third time over a week ago,” the union said in a statement. “We hope the new proposals are meaningful and meet the needs of both workers and the communities we serve. The goal must be a stronger public postal service now and in the future.”
Key Dispute: Weekend Delivery
One major sticking point is weekend delivery. While both sides agree on expanding operations, Canada Post wants to use part-time workers for weekend shifts, while the union insists these roles should go to full-time employees. CUPW accuses the corporation of trying to introduce gig-style work into the public service.
Speaking on CBC’s Power & Politics, Canada Post spokesperson Jon Hamilton said months of talks have failed to yield “meaningful changes.” He also noted that the corporation took time to consider the findings of last week’s Industrial Inquiry Commission report before submitting its revised offer.
Financial Pressures and Government Support
Canada Post has lost over $3 billion before tax since 2018, and projects continued losses this year. The corporation says its financial position was worsened by a month-long strike that began last November and ended only after federal intervention.
In January, the federal government announced more than $1 billion in repayable support to help prevent insolvency and stabilize the national postal service.