Canada Post employees have approved a new contract, marking the conclusion of prolonged negotiations and disputes with the Canadian Union of Postal Workers (CUPW). The union, representing 55,000 postal workers, announced that a significant majority of members voted in favor of the agreement reached in December 2025, with 85.9% endorsing it.
According to CUPW, approximately 86% of rural and suburban mail carriers supported the contract, while 89% of urban workers also gave their approval. Jan Simpson, the national president of CUPW, highlighted that despite the challenges faced, postal workers achieved gains and prevented severe cutbacks initially proposed by Canada Post.
Key provisions in the contract include wage increases of 6.5% in the first year, followed by three percent in the second year and subsequent adjustments matching the annual inflation rate. Additionally, the agreement entails the introduction of a weekend parcel delivery model and enhanced benefits for employees.
The ratification of the contract brings an end to a period of contention between Canada Post and the union, characterized by strikes and disagreements over salary and operational adjustments within the postal service. In response to the approval, Canada Post’s president and CEO, Doug Ettinger, expressed optimism about collaborating with employees to enhance the company’s performance and rebuild trust in the postal system.
During the voting period from April 20 to May 30, both parties agreed to refrain from any labor disruptions, with employees also considering authorizing a strike mandate if the deal was rejected. While a majority of the national executive board recommended ratifying the contract, some union leaders raised concerns about the agreement’s failure to address certain compensation and labor rights issues.
The contract approval follows Canada Post’s first-quarter financial results, revealing a $205 million loss in the initial months of the year. To support the struggling postal service, the federal government allocated $673 million for the current fiscal year. Facing a decline in mail demand, Canada Post emphasizes the need for modernization through initiatives such as community mailboxes, weekend parcel delivery, and potentially closing some post offices.
Minister of Government Transformation, Public Works, and Procurement Joël Lightbound hailed the contract ratification as a significant advancement in Canada Post’s restructuring efforts. As part of the restructuring, service cuts and the cessation of door-to-door delivery for certain addresses are underway, with an emphasis on expanding community mailbox usage. Despite objections to service reductions, the union pledges to concentrate on safeguarding and enhancing postal services in communities following the contract’s approval.