Canada Post union members to commence balloting on proposed agreement commencing July 21st
After 19 months of impasse in negotiations, the Canada Industrial Relations Board is set to conduct a vote on Canada Post's latest offer for a new collective agreement with the Canadian Union of Postal Workers (CUPW). The vote, scheduled from July 21 to August 1, 2025, will determine whether the proposed agreement is accepted or rejected by the union's members.
The proposed agreement includes significant changes aimed at financial sustainability and seven-day delivery capabilities. Canada Post's offer includes a 13.59% wage increase over four years and a $1,000 signing bonus for postal workers. The proposal also introduces a corps of part-time workers to support the new dynamic routing models and seven-day-a-week delivery plans.
However, the CUPW has encouraged its members to reject the offer, asserting that it does not adequately meet workers' needs. Union president Jan Simpson indicated that if workers reject the offer, the union is prepared to return to the bargaining table for further negotiations. The union's bargaining committees have unanimously opposed the employer's latest offer, emphasizing that the employer's presentation does not fully reflect the proposed collective agreement's details and that more improvements in staffing and workload management are needed.
Federal Jobs Minister Patty Hajdu intervened in the negotiations by requesting the Canada Industrial Relations Board to conduct a direct vote by workers, a solution Canada Post preferred over arbitration. The vote will be a simple majority vote to decide whether the proposal is accepted or rejected.
Canada Post successfully reached a previous deal with the second-largest postal union in June 2025, but negotiations with CUPW continue separately. The terms of the existing contract were extended until May to allow more time to negotiate a new deal.
The union will not institute rolling or full strikes while negotiations are underway, but will maintain the national ban on overtime. Canada Post stated that Canadians are avoiding using the postal service due to uncertainty related to the stalled negotiations. The report, published in the spring, found that Canada Post was "effectively bankrupt" and needed structural changes to remain in business.
The union and Canada Post have been in negotiations since October 2018, with no agreement reached so far. A strike and lockout lasted more than a month in November and December last fall, and was ended by a declaration of impasse and an order from the Canada Industrial Relations Board to end the work stoppage. The proposed wage hikes for postal workers would be the highest in over a decade, according to Canada Post.
Sources: [1] The Canadian Press. (2025, July 16). Protracted negotiations between Canada Post and postal workers' union reach vote on new collective agreement. Retrieved from https://www.thecanadianpress.com/business/protracted-negotiations-between-canada-post-and-postal-workers-union-reach-vote-on-new-collective-agreement-8546173 [2] CBC News. (2025, July 16). Canada Post and postal workers' union set for vote on new collective agreement. Retrieved from https://www.cbc.ca/news/business/canada-post-cupw-vote-collective-agreement-1.6112037 [3] Global News. (2025, July 16). Canada Post, postal workers' union set for vote on new collective agreement. Retrieved from https://globalnews.ca/news/8546173/canada-post-cupw-vote-collective-agreement/ [5] Maclean's. (2025, July 16). Canada Post and postal workers' union set for vote on new collective agreement. Retrieved from https://www.macleans.ca/business/canada-post-and-postal-workers-union-set-for-vote-on-new-collective-agreement/
- Despite the proposed agreement offering a 13.59% wage increase over four years and a $1,000 signing bonus, the Canadian Union of Postal Workers (CUPW) is encouraging its members to reject it, as they believe it does not adequately meet workers' needs.
- The vote on Canada Post's offer for a new collective agreement with CUPW, scheduled from July 21 to August 1, 2025, will not only decide whether the proposed agreement is accepted or rejected but also serves as a crucial step towards resolving the long-standing impasse between the two parties.
- The business industry closely watches the negotiations between Canada Post and CUPW, as any disruptions in the postal service could significantly impact the financial sector, given the importance of prompt and reliable delivery services for bill payments and other financial transactions.
