Monday December 22, 2025 | NATIONAL NEWS [Reporting from VICTORIA, BC – Posted at 9:53 pm PT]
by Mary P Brooke | Island Social Trends
A tentative agreement was announced today December 22 by Canada Post and the Canadian Union of Postal Workers (CUPW).
The agreements cover both the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units.
CUPW’s national board recommends that their members accept the deals during ratification votes that will be held in early 2026.
Canada Post said the deals include a 6.5% wage increase for unionized workers in the first year, followed by a 3% increase in the second year. In years 3 through 5 the increases will match the annual inflation rate.
Enhanced benefits are part of the package.
A weekend parcel delivery model will be agreed upon.
If accepted by the union membership, both agreements would be in effect until January 31, 2029.
Timeline this fall:
The December 22 announcement comes after Canada Post and CUPW announced a deal in principle in November.
While the union retained the right to strike in November, CUPW and Canada Post now say they’ve agreed that strike action will not take place during the ratification process nor any lockout action.
Long time line:
The union has been on strike — off and on — for about two years.
Notably, the holidays parcel shipping season was entirely disrupted in November and December 2024. That left both customers and many small businesses in the lurch.
Many small businesses that switched delivery methods may not return to Canada Post though the pricing level of Canada Post is not as high as private couriers so that may be a saving grace for Canada Post to recoup some customers who may have strayed.
Relief for the Crown corporation:
Canada Post has been losing money each year since 2018. That has been largely due to an outmoded labour model (job-for-life guarantee and pay even if no work to do) and the inability to shift to market demand (mostly due to labour union restrictions about working on weekends).
The most recent Canada Post quarterly report in November included a $541-million before-tax loss, the largest in its history.
At the beginning of 2025, Canada Post received what was essentially a rescue loan from the federal government in the amount of $1.034 million. That was intended to carry the corporation through to March 2026 to cover operational expenses but that amount is expected to run out by year-end.
On November 7, Canada Post submitted their transformation plan to Joël Lightbound, Minister of Government Transformation, Public Works and Procurement. The plan would support the Minister’s direction to ensure postal services remain accessible to all Canadians, particularly those in rural, remote and Indigenous communities.
Details about the tentative agreements:
As part of the tentative agreements, the parties have agreed to:
- Five-year agreements that expire on January 31, 2029 (Urban and RSMC).
- Higher wage increases: 6.5% increase in year one (including 5% already received) and 3.0% in year two. For years 3, 4 and 5, annual wage increases would match the annual inflation rate of the Consumer Price Index (Urban and RSMC).
- No changes to employees’ Defined Benefit pension (Urban and RSMC).
- An enhanced health benefits plan for employees and better income replacement for injury-on-duty leave and leave under the short-term disability program (Urban and RSMC).
- 6 non-carry over personal days locked into the collective agreement, for a total of 13 personal days in the agreement (Urban and RSMC).
- New operating model to support weekend parcel delivery (Urban and RSMC)
- Maintaining the current job security provisions for Urban employees (Urban)
- Enhancing the current job security provisions for RSMC employees (RSMC).
- Adjusting the number of corporate post offices protected in the collective agreement to 393 (Urban)
- Moving employees to an hourly rate of pay (RSMC).
===== RELATED:
- Tentative agreement between Canada Post & CUPW in shadow of right to strike (November 22, 2025)
- Canada Post AGM: evidence of small steps forward (November 20, 2025)
- Canada Post submits their transformation plan to government (November 11, 2025)
- Canada Post & their workers on a journey to new realities (October 6, 2025)
- Quietly stabilizing Canada Post with a $1.034 billion loan (January 24, 2025)
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