Canada Post union tables new offers seeking higher wages

Labour lawyer Sundeep Gokhale breaks down key issues in Canada Post talks and how Air Canada’s dispute could impact negotiations.

OTTAWA — The Canadian Union of Postal Workers presented new offers to Canada Post on Wednesday seeking higher wages while allowing for the addition of weekend delivery and part-time workers to the postal service.

The new proposals include annual wage increases of nine per cent in the first year of the agreement, and four per cent in the second year, followed by hikes of three per cent in years three and four.

That’s up from the roughly 13 per cent over four years included in Canada Post’s most recent offers from late May.

Unionized workers rejected those offers in a direct vote earlier this month.

Canada Post said in a statement that it’s reviewing the union’s offers, adding the Crown corporation is “committed to reaching new collective agreements through the bargaining process.”

CUPW’s new offers come as the two parties returned to the bargaining table Wednesday. Additional negotiations are scheduled for Friday and Monday.

The union’s new offer for its urban unit also includes provisions for adding part-time workers and weekend parcel delivery, with some limitations.

Under the proposal, weekend mail service would be mostly limited to parcel delivery, pickup and mail sorting.

Part-time workers hired to help with weekend service would be limited to 20 hours of work per week. The number of part-time workers scheduled for weekend duties would also not be allowed to surpass full-time workers also on shift.

Expanding Canada Post’s workforce to include a corps of part-time workers has been among the sticking points in negotiations, which have now stretched for over a year and a half.

Canada Post has warned the postal service is bleeding millions of dollars in business daily tied to uncertainty around collective bargaining.

The Crown corporation’s financial woes have been well-documented throughout the talks. An Industrial Inquiry Commission report from Commissioner William Kaplan earlier this year found the postal service was effectively bankrupt and needed substantial reforms to remain afloat.

The union is also seeking extra payments for a cost-of-living adjustment to be triggered if inflation reaches 10.33 per cent in a given quarter. That’s a higher threshold than the roughly seven per cent outlined in Canada Post’s most recent offers.

The CUPW proposal also includes various benefits improvements, a better short-term disability program and largely maintains the status quo on the union’s defined benefit pension.

CUPW is also maintaining a national ban on overtime work as negotiations resume.

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Craig Lord, The Canadian Press

This report by The Canadian Press was first published Aug. 20, 2025.