Canada Post Workers Reject Contract—Strike Unlikely, But Uncertainty Grows

Unionized workers at Canada Post have overwhelmingly voted against their employer’s so-called “final” contract offer, marking another turning point in a dispute that has stretched over 20 months. While experts say a strike is unlikely, uncertainty continues to loom over the future of the struggling Crown corporation.

Offer Rejected by Majority

Roughly 55,000 members of the Canadian Union of Postal Workers (CUPW) rejected Canada Post’s offer, which included:

• A 13% wage increase over four years
• Signing bonuses of $1,000 for full-time and $500 for part-time workers
• Restructuring plans that would expand part-time and weekend delivery roles

According to vote results, 68.5% of urban workers and 69.4% of rural/suburban workers opposed the deal.

The vote was administered through a forced ratification process under the Canada Labour Code—a move requested by Canada Post and approved by the federal government. It bypassed union leadership and allowed workers to vote directly, a rare intervention intended to break the deadlock.

Back to the Table, But With Deep Divides

CUPW expressed disappointment in the forced vote, but said its negotiators remain ready to resume talks. The union has long opposed increasing part-time positions and fears it would erode full-time job security and pension protections.

While a significant majority rejected the deal, over 30% of members supported it—revealing a divide that could complicate future strategies, including strike action.

Labour experts say these splits could weaken the union’s position.

“Even if a strike were organized, it’s unclear it would achieve the union’s goals,” said Larry Savage, labour studies professor at Brock University.

Why Arbitration Is Not a Quick Fix

Before the forced vote, CUPW supported binding arbitration—where a neutral third party would settle the dispute. Canada Post opposed it, arguing that arbitration would take too long and fail to deliver the structural reforms it believes are essential to remain competitive.

Experts agree that while arbitration could bring resolution, it is unlikely to provide lasting solutions for the corporation’s deeper problems.

“Binding arbitration is not a long-term fix for the challenges at Canada Post,” Savage noted.

What’s at Stake for Canada Post?

The Crown corporation continues to suffer massive financial losses. It reported an $841 million loss in 2024, and forecasts this could balloon to $1.7 billion by 2029.

Canada Post blames these losses on:

• High labour and pension costs
• Declining letter mail volumes
• Competition from private couriers like Amazon, UPS, and DHL

The company argues that greater flexibility is key to delivering more parcels on weekends and adapting to modern customer expectations.

But CUPW opposes changes like dynamic routing and part-time expansion, warning that they will destroy stable, full-time jobs.

What’s Next?

Experts suggest Canada Post could try to impose new contract terms or initiate layoffs to pressure the union. However, such aggressive strategies risk deepening the rift between the two sides.

The federal government has called for both parties to return to the table and resolve the dispute promptly. Jobs Minister Patty Hajdu emphasized that modernizing and protecting Canada Post remains a priority, but did not specify whether arbitration or further intervention would follow.

A long-term restructuring of Canada Post’s mandate—possibly ending daily door-to-door delivery or expanding community mailboxes—could come after this dispute concludes, as suggested in earlier reports.

“The fight is not just about this contract,” Savage said. “It’s about the long-term survival of both Canada Post and the union.”

Do you think Canada Post should modernize by increasing part-time roles—or should it protect full-time jobs at all costs? Let us know in the comments.

More…

• https://globalnews.ca/news/11318514/canada-post-offers-rejected-what-next
• https://www.theglobeandmail.com/business/article-canada-post-workers-union-contract-offer-labour-dispute
• https://www.msn.com/en-ca/money/topstories/postal-workers-rejection-of-latest-offer-is-bad-news-for-small-biz-canada-post-cfib/ar-AA1JWWxo?ocid=finance-verthp-feeds