Canada Post tables new offers to CUPW in bid to avoid strike

With a strike deadline looming, Canada Post has presented new global offers to the Canadian Union of Postal Workers (CUPW) in a bid to reach new collective agreements and maintain service.

The offers, made May 21, cover both Urban and Rural and Suburban Mail Carrier (RSMC) bargaining units. Canada Post said they include increased wage proposals, protection of existing employee benefits and changes to the delivery model aimed at addressing the Crown corporation’s mounting financial losses.

“Canada Post has proposed important changes to its delivery model to increase its flexibility and help address the Corporation’s significant financial and operational challenges,” the company said in a release.

The move comes at a critical time for the postal service. Since 2018, Canada Post has posted more than $3 billion in pre-tax losses and is expected to record another significant loss in 2024. Earlier this year, the federal government announced up to $1.034 billion in repayable funding to stave off insolvency.

CUPW has issued strike notices and intends to begin strike activity as of 12:00 a.m. local time May 23, pending the outcome of ongoing negotiations. The current collective agreements are set to expire May 22.

Canada Post said the new offers reflect recommendations from the Industrial Inquiry Commission (IIC), which presented its final report on May 15. The commission was established by the federal government to assess the impasse after the union launched a national strike in November 2024. Operations resumed in December after the Canada Industrial Relations Board ordered workers back and extended the contracts to May 22.

Under the new proposals, current employees would retain their defined benefit pension plans, job security protections, health and post-retirement benefits, vacation and pre-retirement leave, cost-of-living allowance, and existing work schedules.

Canada Post has increased its wage offer to six per cent in the first year, followed by three per cent, two per cent and two per cent in the subsequent three years—a compounded increase of 13.59 per cent. The proposals also include improved short-term disability coverage and six additional personal days enshrined in the contracts.

The corporation has withdrawn several proposals from earlier bargaining rounds, including changes to the health benefits plan and post-retirement benefits, and a shift to defined contribution pensions for future employees.

In a bid to modernize operations, Canada Post is also proposing to expand weekend parcel delivery and introduce part-time positions with guaranteed weekly hours and access to benefits. Letter carriers would not be required to work weekends under the proposed model.

Additionally, the company is calling for a limited rollout of Dynamic Routing at 10 facilities, a technology that recalculates routes daily for improved delivery efficiency—a system already in use by other major couriers.

New hires would become eligible for health and pension benefits after six months of regular employment.

CUPW said it will take the time to carefully review the details of the offers to ensure they align with the priorities and needs of its members. The union will provide a comprehensive update once it has completed its review and analysis.

Canada Post emphasized the urgency of the situation and said another work stoppage would be “costly and disruptive for employees, small businesses and the millions of Canadians who rely on the postal system.”