Canada Post, CUPW sign collective agreements, ending years of heated

Canada Post said Thursday it has officially signed new collective agreements with the Canadian Union of Postal Workers (CUPW). 

CUPW, which represents 55,000 postal workers, said on June 1 that its members voted overwhelmingly in favour of ratifying the deal, ending years of tense negotiations and strikes amid questions about the Crown corporation’s future.

“With the stability of new agreements in place, we look forward to working with our employees and bargaining agents to rebuild the business, restore confidence in the postal service and better serve the country,” a Canada Post spokesperson said in a statement Thursday.

The deal includes wage increases of 6.5 per cent in the first year, three per cent in the second year and increases matching the annual inflation rate in years three to five. It also includes a weekend parcel delivery model and improved benefits.

CUPW said about 86 per cent of rural and suburban mail carriers and 89 per cent of urban workers voted in favour. The deal will remain in place until Jan. 31, 2029.

Canada Post says the agreement is critical as the corporation moves ahead with a “multi-year transformation to return to financial sustainability and better meet the modern needs of the country.”

Its first-quarter results showed a loss of $205 million in the first three months of this year, part of a years-long struggle to compete against private couriers. 

Canada Post has moved to cut costs by phasing out door-to-door delivery, among other measures opposed by the union.