Wednesday May 21, 2025 | NATIONAL NEWS [Reporting from VICTORIA, BC]
Analysis by Mary P Brooke | Island Social Trends
Canada Post has made a new offer to the Canadian Union of Postal Workers (CUPW), just a few days before postal workers were preparing to go on strike starting 12:01 am on Friday.
Canada Post says in a May 21 Canada Post news release that their offer demonstrates the company’s commitment to reach agreements, with further movement on wage increases and protection of employee benefits and entitlements.
Stop-and-start:
If the 55,000 postal workers were to go on strike on May 23 that would be their second labour action in six months. But the postal union’ has’s rep yesterday in national media promised a two-week pause as the new offer is reviewed by CUPW.
A pause for input from both parties took place in January and February during which time a commissioner received input from both sides and prepared a report. That report was issued on May 16, after which time the union still issued a strike notice to Canada Post.
New offer: from Canada Post
Canada Post says they are now offering that which is most important to their employees. Under the new global offers, current employees would keep their:
- Defined benefit pension
- Industry leading job security provisions
- Health benefits and post-retirement benefits
- Vacation (up to seven weeks) and pre-retirement leave
- Cost of living allowance that protects against the effects of unforeseen inflation
- Work schedules
“The Corporation has increased its wage offer. Current employees would receive wage increases of 6.0% in year one; 3.0% in year two; 2.0% in year three; and 2.0% in year four (13.59% compounded). The offers also provide employees with better income replacement for leave under the short-term disability program, and six added personal days locked into the collective agreements,” as stated in the May 21, 2025 Canada Post news release.
As part of the company’s commitment to reach agreements, Canada Post has withdrawn items since its last global offer. The company is no longer proposing a new health benefits plan, changes to employees’ post-retirement benefits, or enrolling future employees in the defined contribution pension.
Impasse for being stuck in the past:
Both sides seem to want things that are of the past, and accuse each other of such.
Canada Post still wants to ‘reach every household in the country’ (as part of its legislated mandate) and CUPW workers want a level of job security that is probably not seen anywhere else in today’s economy (i.e. one job for life with generous health benefits, and a guaranteed pension).
The Canadian Union of Postal Workers (CUPW) has proposed a two-week pause on a potential strike that was set to begin Friday as it reviews the latest offer from Canada Post, according to negotiator Jim Gallant.
“We will take the time to carefully review the details of the offers to ensure they align with the priorities and needs of our members. We will provide a comprehensive update once we’ve completed our review and analysis,” says CUPW national president Jan Simpson, in a CUPW news release today May 21.
Meanwhile, during all this back-and-forth, Canada Post customers find themselves having to arrange alternative methods to postal mail and parcel delivery.
Financial crunch for Canada Post:
Canada Post and CUPW are negotiating at a critical moment for the postal system.
Since 2018, the Corporation has recorded more than $3 billion in losses before tax, and it will post another significant loss for 2024.
The decline of letter mail and upsurge of a multitude of parcel delivery options has been happening since before 2000, thanks to email and e-commerce. Canada Post has had plenty of time to try and right the ship, though dealing with a somewhat ironclad union labour agreement of CUPW with its workers has been no easy scenario to work with.
Canaad Post also seems to have underestimated the willingness of Canadians to support their post office. The corporation has been painfully slow to increase the cost of a letter-mail stamp to any level close to the significance of the service.
Postage stamp increases are issued almost apologetically rather than proudly declaring the value of the service and for how little it still costs (e.g. first class letter mail stamp is currently $1.24 if stamps are purchased in a booklet, or $1.44 if purchased as a single stamp). Permanent stamps can be used for any length of time.
In early 2025, the Government of Canada announced repayable funding of up to $1.034 billion for Canada Post to prevent insolvency.
===== RELATED:
- Canada Post workers strike set to begin on May 23 (May 20, 2025)
- Canada Post needs revamp but commissioner’s recommendations fall short (May 19, 2025)
- Canada Post pauses negotiations before possible postal worker strike (May 14, 2025)
- Carney combines experience and new ideas in first full cabinet (May 13, 2025)
- Breakdown of Canada Post mediated talks with postal workers (March 2, 2025)
- Canada Post parcel invoice system upgrade (February 13, 2025)
- Quietly stabilizing Canada Post with a $1.034 billion loan (January 24, 2025)
- Jan 13: Canada Post letter mail & parcel prices up (January 14, 2025)
- Canada Post domestic parcel service now fully restored (January 7, 2025)
- Canada Post service resumes Dec 17 with workers back on the job (December 17, 2024)
NEWS SECTIONS: BUSINESS & ECONOMY | JOBS & EMPLOYMENT | CANADA POST