Canada Post rejects union’s request for binding arbitration to end labour dispute

The frustrated workers say ‘Canada Post doesn’t want to make a deal’ with the union. CTV News’ Kamil Karamali reports.

Canada Post has rejected a request from the union representing about 55,000 of its workers to send their ongoing labour dispute to binding arbitration.

The Canadian Union of Postal Workers made the request in a statement Saturday, saying it was inviting Canada Post to a fair, final and binding arbitration process to resolve negotiations that have dragged on for months without producing a new collective agreement.

But the Crown corporation dismissed the proposal in a response on Sunday, saying it wants to “restore stability” to the postal service and arguing the union’s request for binding arbitration would do the opposite.

Canada Post says arbitration would be long and complicated and would likely last more than a year, adding to what it described as its significant financial challenges.

Canada Post presented what it called its “final offers” to the union on Wednesday, with concessions including an end to compulsory overtime and a signing bonus of up to $1,000.

But it stuck to a proposal for a 14-per-cent cumulative wage hike over four years and part-time staff on weekend shifts, a major sticking point in the talks.

Canada Post said the two sides are at loggerheads after months of conciliation and mediation and has asked Jobs Minister Patty Hajdu to force a union membership vote on its latest proposals.

A statement from the CUPW Sunday evening said the forced union vote would not bring lasting labour peace -- regardless of the vote’s outcome.

“This refusal constitutes yet another demonstration that (Canada Post) is not interested in a reasonable outcome to this round of negotiation. A forced vote may fail to end the labour conflict and risks further division, prolonging uncertainty for all parties,” the statement said.

The union has been in a legal strike position as of May 23, but so far has opted to ban members from working overtime instead.

-- With files from Christopher Reynolds in Montreal

This report by The Canadian Press was first published June 1, 2025.