Canada Post has presented new contract proposals to the Canadian Union of Postal Workers (CUPW), hoping to reach an agreement ahead of a potential labour disruption. The offer, which was introduced on October 29, includes a wage increase of 11.5 per cent over four years and proposes changes that aim to protect employee benefits while addressing the financial strain on the national mail carrier.
With the cooling-off period set to expire on November 2, the risk of a strike looms as CUPW recently received a strike mandate from its members in both the Urban and Rural and Suburban Mail Carriers (RSMC) bargaining units. A work stoppage could interrupt holiday season mail and parcel deliveries and impact the Corporation’s efforts to recover financially in a competitive delivery market.
Canada Post reported an operational loss of $490 million in the first half of 2024 and has accumulated over $3 billion in losses since 2018, which it attributes to challenges in the parcel delivery sector. “These proposals balance the need to support our employees with the need to manage Canada Post’s financial position,” a spokesperson for the Corporation stated.
The offer also addresses long-standing issues raised by CUPW. RSMC employees would see a shift to an hourly pay model, and Canada Post has agreed to support CUPW’s proposal to eventually merge the RSMC and Urban bargaining units. The Corporation has also proposed improvements in leave entitlements and continued wage protection against inflation for all represented employees.
To aid in resolving outstanding issues, Canada Post suggested that several key points in the negotiation process be submitted to binding-interest arbitration, allowing a neutral third party to mediate on contentious matters. In a bid to enhance service, Canada Post has proposed changes to allow for seven-day parcel delivery and a more flexible delivery model.
Negotiations between Canada Post and CUPW have been ongoing since August, marked by several rounds of offers and counter-offers. Federal mediators were appointed on October 15 to assist both parties in reaching an agreement. Should the cooling-off period conclude without a deal, either side could initiate a labour action with a minimum of 72 hours’ notice, making November 3 the earliest possible strike date.