Canada Post Workers Reject Contract, Future Still Uncertain
So here's what’s going on right now with Canada Post — and it's a pretty big deal. The union representing over 55,000 workers has officially rejected the latest contract offer from the Crown corporation. After a vote was held, around 68.5% of urban workers and 69.4% of rural and suburban workers said no to the proposal. So yeah, that’s a clear “no” from the majority.
Now, the offer that was on the table included wage increases of about 13% spread out over four years , which sounds decent at first. But here's the catch — the deal also involved bringing in more part-time workers . Canada Post argued that this move was necessary to help the company stay afloat and rebuild its parcel business, especially since the company has been facing serious financial struggles — reportedly losing around $10 million a day just this past June.
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The Canadian Union of Postal Workers (CUPW) had urged its members to vote against the deal, saying it didn’t meet their needs and didn’t go far enough in addressing key concerns. The union is now calling on Canada Post to return to the negotiating table and come up with a new, ratifiable agreement. In the meantime, a national overtime ban among workers is still in effect.
From the government side, Federal Labour Minister Patty Hajdu acknowledged the outcome, noting that after 18 months of negotiations, it was important for the workers to have their say. Federal mediators have been involved in the process since August 2024, and they’ll continue supporting both sides as talks continue. Hajdu also made it clear that the government is closely monitoring the situation and expects a resolution to come sooner rather than later.
This dispute has been simmering for well over a year. Last holiday season, things got really tense — with a strike that left mail and packages undelivered and many post offices shut down. The government had to step in and asked the Canada Industrial Relations Board to assess the situation. That board later concluded that Canada Post was, in their words, “essentially bankrupt” and recommended major structural changes — like ending daily door-to-door delivery and increasing the use of community mailboxes.
Business groups are also sounding the alarm. Dan Kelly , president of the Canadian Federation of Independent Business, said this rejection is “extremely disappointing” and warned that if another strike happens, a large chunk of small businesses might just stop using Canada Post entirely.
So where does that leave us? Basically, both sides are under pressure to return to the table and work something out — fast. Because if they don’t, the future of Canada Post — and reliable mail service across the country — is going to stay up in the air.
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