Canada Post and Union Reach Tentative Deal to End Postal Strike

Canada Post and the Canadian Union of Postal Workers (CUPW), representing approximately 55,000 postal workers, have reached a tentative agreement to end a strike that has disrupted mail deliveries nationwide. The union confirmed that all parties “have agreed on the main points,” leading to the suspension of strike action pending a union vote.

The exact terms of the deal have not been publicly disclosed. The CUPW noted that it still needs to finalise the contractual language for the collective agreements, which will be put to a vote by union members. The union also emphasised that it “retains the right to strike” while the process is ongoing.

The strike began on September 25 and evolved into a rolling strike amid ongoing disputes over postal workers’ pay and benefits. Negotiations between Canada Post and the union have been underway for nearly two years.

The federal government had previously authorised significant operational changes at Canada Post, including ending door-to-door mail delivery to around four million homes, shifting non-urgent letter mail from air to ground transport, closing some rural post offices, and granting Canada Post greater flexibility to adjust prices.

These measures were introduced in an effort to address Canada Post’s mounting financial losses, which reached C$1 billion last year and are projected to hit C$1.5 billion this year.

The decline in traditional letter mail, along with strong competition from courier services, has heavily impacted the postal service’s primary revenue streams: letter mail, direct-marketing mail, and parcel mail.

Canada Post’s financial challenges and the resulting strike reflect a broader trend seen in postal services worldwide, including the UK’s Royal Mail and the United States Postal Service, as they adapt to changing consumer behaviours and economic pressures.

The postal workers previously staged a strike in November 2024 over similar issues of pay and working conditions.

With the tentative deal in place, Canada Post services are expected to resume normal operations should the union members approve the agreement in the upcoming vote.