Canada Post and the union representing its postal workers have successfully negotiated a tentative collective agreement, securing labour peace through the critical holiday season and beyond. The announcement, made on Monday, December 22, 2025, averts the threat of any strike or lockout action.
Details of the Tentative Agreements
The Crown corporation and the Canadian Union of Postal Workers (CUPW), which bargains for approximately 55,000 employees, finalized the language for new contracts after reaching a deal in principle in November. These negotiations had been ongoing for two years.
CUPW National President Jan Simpson stated that the tentative agreements deliver wage increases with inflation protections, improved benefits, and enhanced job security. She emphasized that the five-year pacts provide "much needed stability" for both postal workers and communities nationwide.
Wage Structure and Ratification Timeline
According to the terms released, the wage package includes:
- A 6.5 per cent increase in the first year, which incorporates a five per cent raise already received by workers.
- A three per cent increase in the second year.
- For years three through five, annual wage increases will be pegged to the annual inflation rate as measured by the Consumer Price Index (CPI).
If ratified, the collective agreements will be in effect for five years, until January 31, 2029. The union's national executive board is recommending that its members accept the deals. A ratification vote by the workers is scheduled for early 2026.
Context and Significance of the Deal
The union characterized this round of bargaining as unfolding during an "unprecedented attack on postal workers and the public post office," citing interventions by successive federal governments that limited leverage and delayed negotiations.
The timing of the announcement is crucial, ensuring no disruption to mail and parcel delivery during the peak holiday period. This stability is vital for both Canadian consumers and businesses relying on postal services.
The path to this tentative deal marks a significant milestone after a prolonged period of negotiation, setting the stage for a stable operational environment at Canada Post for the remainder of the decade.
