Canada Post has presented a new set of contract offers to the Canadian Union of Postal Workers (CUPW), pledging wage increases and benefit protections while stressing the need to modernize its operations and address mounting financial pressures.
The corporation stated that the proposals maintain provisions from its “best and final” offer of May 28, while also adding further commitments.
Among the highlights are compounded wage increases of 13.59 per cent over four years, continued access to a defined benefit pension plan, health and post-retirement benefits, vacation entitlements of up to seven weeks, pre-retirement leave, and a cost-of-living allowance designed to shield employees from unexpected inflation.
The labour standoff has stretched on for months, with 55,000 postal workers represented by CUPW locked in negotiations with the Crown corporation over wages, part-time work, and delivery standards.
On Friday, Canada Post emphasized that the package reflects the limits of what it can afford while still maintaining good jobs and benefits for employees over the long term. The company has argued that modernization is essential to its survival, citing declining mail volumes, growing parcel competition, and financial losses exacerbated by strike actions earlier this year.
“Due to the company’s deteriorating financial situation, a signing bonus for employees is no longer on the table,” a Canada Post spokesperson said.
The union’s stance
One of the most contentious elements is a new workforce adjustment process for the urban bargaining unit, which would replace existing “job security for life” provisions.
Under the proposal, Canada Post would provide six months’ notice before any reductions, consult with CUPW, and offer voluntary departure incentives of up to 78 weeks’ base pay. Seniority-based bidding and bumping would remain in place, with layoffs described as a last resort if attrition and incentives proved insufficient.
CUPW has not yet issued a formal response to the latest offer. The union has previously criticized Canada Post’s push for delivery model changes, warning they could erode service quality and job security.
Negotiations are expected to continue in the coming days, with both sides under mounting pressure to reach an agreement that balances the company’s financial realities with workers’ demands for stability and fairness.