OTTAWA — Labour peace may soon come to Canada’s beleaguered postal service. Early Monday afternoon, Canada Post confirmed that the Canadian Union of Postal Workers (CUPW) accepted tentative agreements for urban, rural and suburban letter carrier bargaining units, with collective bargaining agreements in place until Jan. 31, 2029.
Canada Post president and CEO Doug Ettinger said he was pleased to see the union ratify the new agreements. “With the stability of new agreements in place, we look forward to working with our employees and bargaining agents to rebuild the business, restore confidence in the postal system and better serve the country,” he said in a statement. He explained that the agreements demonstrate the union’s understanding that Canada’s postal system is in dire need of change. “They mean we can provide affordable weekend parcel delivery and make needed adjustments to our retail network while ensuring we continue to provide good-paying jobs across the country.”
Contracts pass muster with large majorities
Over 85% of CUPW’s 55,000 members voted in favour of the deal, which includes 6.5% wage increases. Broken down by bargaining group, 85.9% of the union’s rural and suburban letter carrier unit voted in favour, compared to the 89% of urban unit employees who gave the new contracts their blessing.
In a statement from CUPW president Jan Simpson, who in March urged her members to reject the deal, thanked members who participated in the process. “Over the course of this round of bargaining, postal workers have faced enormous challenges. It has not been easy, but members have stood strong,” she said. “We still have our work cut out for us. To win the fights ahead, prepare for the next round of bargaining and mobilize against the Government’s attacks on our public postal service, we all have to regroup and unite in our struggle.”
Canada Post reported $205M loss in Q1/2026
With the internet and private delivery services making Canada Post less relevant in daily life, the crown corporation has struggled financially. Last week, Canada Post reported a $205-million loss in the first quarter of this year — a loss $164-million higher than what was reported in the first quarter of 2025. Revenue fell by $181 million in the first quarter of 2026 compared to the same time period last year — a 14.3% drop. The crown corporation also began moves earlier this year to eventually end door-to-door mail delivery in the one-quarter of Canadian addresses who still get weekday visits from the mailman.
Canada Post has spent the past two-and-a-half years locked in a prolonged bargaining quagmire with CUPW. Labour uncertainty — particularly after the 2024 postal strike during that year’s holiday season — saw some business owners abandoning Canada Post, with many others looking for alternatives if the service was halted again.
In a statement, Canadian Federation of Independent Business (CFIB) President Dan Kelly called the potential ratification good news for his members. “After years of strikes and uncertainty, it is good that Canada Post will have some labour market certainty in the months ahead,” he said. “Many small firms still depend on Canada Post as a low-cost way to send marketing material, move money between businesses and send packages to consumers in every community across the country.”
