Canada Post and the union representing its 53,000 workers have reached a tentative contract agreement that would bring an end a two-year labour dispute which led to two national strikes.
Details of the agreement-in-principle weren’t released.
“After more than two years of negotiations, we have reached agreements in principle with Canada Post covering both postal bargaining units,” the Canadian Union of Postal Workers said in a statement posted on its website early Friday evening.
CUPW said the two sides are still working through legal language that will result in a contract agreement that can be voted on by union members.
While details are being finalized, the union says it won’t strike, and the Crown corporation says it won’t lock its employees out.
“The union will retain the right to strike until new agreements are ratified,” CUPW added.
In a press release issued after its statement was posted on the CUPW website, the union expanded on the possibility of a strike resuming. “Should the Tentative Agreements not be reached because the parties disagree on how the agreement in principle is reflected in language provisions, the suspension will be lifted for both parties, and the Union may continue strike activity.”
“The parties have reached agreements in principle but have yet to finalize tentative collective agreements for signing. While we do so, we have agreed that all strike/lockout activity is suspended,” Canada Post said.
“As the parties work to finalize the tentative agreements, we will make no comment on the details of any potential agreement.”
News of the agreement was a relief for small businesses who’ve been facing uncertainty in the lead-up to the busy holiday season, said Dan Kelly, CEO of the Canadian Federation of Independent Business.
“It’s very good news,” said Kelly. “We may be able to salvage some of the holiday season.”
Rotating bans on advertising flyer deliveries hit CFIB members hard, Kelly said.
“Even the rotating strike action was having a big impact on small businesses, especially the flyers,” said Kelly.
Canada Post is now a much more palatable option, Kelly said.
“There are so many merchants who have been gun-shy about using Canada Post,” said Kelly.
Having a reliable service that ships to all parts of the country is something Canada needs, even though changes are inevitable, he added.
“Canada still needs a postal service. We just need one in a very different form than it’s been until now.”
York University labour studies professor Steven Tufts said neither side is likely to be overjoyed with the details of the agreement in principle.
“Given the stakes for both sides, the best we can hope for is that it is a deal both sides can live with,” said Tufts. “I doubt either will be completely happy with any agreement after such a long negotiation.”
McMaster University labour studies professor Stephanie Ross said Canada Post employees are facing a radically changed workplace, no matter what the details of the agreement are.
“The challenges postal workers are facing are not over,” said Ross. “I hope this agreement gives them protections that allow them to navigate the changes that are coming with dignity.”
The agreement comes after just over two weeks of renewed bargaining between the two sides, guided by federally-appointed mediator Peter Simpson. Simpson is the director general of the Federal Mediation and Conciliation Service.
Earlier this week, Canada Post said it’s had more than $1 billion in operating losses in 2025, with roughly $535 million of that coming in the third quarter alone. The Crown corporation’s CFO said it’s headed for its eighth annual loss in a row, and that this year will likely see a record amount of red ink.
Canada Post CEO Doug Ettinger also said the Crown corporation is expecting 16,000 employees to retire or take voluntary departure by 2030, with another 14,000 leaving by 2035.
In late September, the federal government gave the green light for a broad restructuring of Canada Post, including the elimination of home delivery, increased use of community mailboxes and elimination of some rural post offices. Federal infrastructure minister Joël Lightbound said the restructuring was necessary to fight an “existential crisis” faced by the financially-struggling Crown corporation.
Many of the changes approved by Lightbound were recommended in a May report by the Industrial Inquiry Commission led by veteran mediator William Kaplan.
Within hours of Lightbound’s September announcement, CUPW launched its second national strike within a year. That strike was subsequently downgraded to a series of rotating regional strikes.
On Nov. 7, the Crown corporation gave the federal government its implementation plan for the restructuring, but said it wouldn’t make details public until the plan is finalized and approved.
CUPW has said the restructuring would lead to service cutbacks and jobs losses.
In August, CUPW members rejected Canada Post’s “final offer” in voting ordered by the federal government and monitored by the Canada Industrial Relations Board.
The “final” contract offer rejected in August included a 13 per cent wage hike spread over four years, as well as a $1,000 signing bonus for employees.
