Canada Post employees have approved a new contract, bringing an end to years of disputes and negotiations between the union and the Crown corporation, which included nationwide strikes. The Canadian Union of Postal Workers (CUPW), representing 55,000 postal workers, announced that the majority of its members voted in favor of the agreement reached in December 2025, with an overwhelming 85.9% supporting it.
The union reported that 86% of rural and suburban mail carriers and 89% of urban workers endorsed the contract. CUPW’s national president, Jan Simpson, highlighted that despite the challenges, postal workers achieved gains and prevented significant cutbacks proposed by Canada Post. The agreements safeguard essential rights such as job security and pensions, as well as ensuring wage increases, enhanced benefits, and compensation for all hours worked for rural and suburban mail carriers.
The contract entails a 6.5% wage hike in the first year, followed by three percent in the second year, with subsequent raises aligned with the annual inflation rate for the following three years. Additionally, the deal includes the introduction of a weekend parcel delivery model and improved benefits.
The ratification of the contract concludes a series of conflicts between Canada Post and the union regarding wages and structural adjustments to the postal service, which led to multiple strikes by workers during the negotiation process. Doug Ettinger, the president and CEO of Canada Post, welcomed the positive outcome of the vote, expressing optimism for collaboration with employees to enhance the business, rebuild trust in the postal system, and better serve the nation.
The ratification process took place between April 20 and May 30, during which both parties agreed to refrain from strikes or lockouts. Amid the vote, employees also considered authorizing a strike mandate if they rejected the agreement. While 60% of the national executive board recommended ratifying the deal, Simpson and four other union leaders issued a minority report opposing the agreement, citing concerns about compensation and worker rights.
Canada Post recently reported a $205 million loss in the first quarter of the year, underscoring the financial challenges faced by the postal service. To support its operations, the federal government provided $673 million in funding for the current fiscal year. As Canada Post navigates declining demand for mail services, it aims to modernize through initiatives such as community mailboxes, weekend parcel delivery, and potential post office closures.
Joël Lightbound, Minister of Government Transformation, Public Works and Procurement, hailed the contract ratification as a significant step towards restructuring Canada Post. The postal service’s restructuring efforts include discontinuing door-to-door delivery for certain addresses and expanding the utilization of community mailboxes. The union, while opposing service cuts, pledged to focus on safeguarding and enhancing postal services in communities following the agreement’s ratification.