Canada Post and the Canadian Union of Postal Workers have reached tentative five-year collective agreements covering both urban postal workers and rural and suburban mail carriers, potentially ending more than two years of labour uncertainty.
The agreements, finalized after talks resumed in November, include wage increases, enhanced benefits and a new operating model for weekend parcel delivery. If ratified, both contracts would expire Jan. 31, 2029.
Under the proposed deals, workers would receive a six-and-a-half per cent wage increase in the first year, including five per cent already paid, followed by a three per cent increase in year two. Wage increases in years three through five would be tied to annual inflation as measured by the Consumer Price Index.
Canada Post said the agreements preserve employees’ defined-benefit pension plans and provide improved health benefits, along with better income replacement for injury-on-duty leave and short-term disability.
The deals also include 13 personal days written into the collective agreements, job security protections for urban employees and enhanced job security provisions for rural and suburban mail carriers. Rural and suburban carriers would also move to an hourly rate of pay.
Canada Post said 393 corporate post offices would remain protected under the agreements and both bargaining units would be covered by a new model to support weekend parcel delivery.
The Canadian Union of Postal Workers’ national executive board has voted to recommend members approve the agreements, saying the union achieved improvements over Canada Post’s earlier global offers.
Among the gains cited by the union are higher wages with inflation protection, improved benefits with no changes to premium cost-sharing, retention of key job security language in the urban agreement and limits on operational changes such as load levelling and dynamic routing.
The union said changes to the short-term disability program and personal days still need to be finalized, with that language expected by Jan. 16. Ratification votes will take place only after the remaining language is completed.
CUPW said ratification votes for both bargaining units will be held in the new year and that there will be no strike or lockout activity during the voting period.
Canada Post and the union said more detailed summaries of the agreements will be released ahead of the ratification process.
