Canada Post employees have approved a new contract, marking the conclusion of prolonged 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, reported a significant majority in favor of ratifying the agreement reached in December 2025, with an acceptance rate of 85.9 percent.
According to the union, around 86 percent of rural and suburban mail carriers supported the contract, while 89 percent of urban workers gave their approval. CUPW national president Jan Simpson stated that despite challenges, postal workers achieved certain advancements and prevented severe cutbacks initially proposed by Canada Post. The agreements safeguard essential rights such as job security and pensions, along with providing substantial wage increases, improved benefits, and compensation for all hours worked by rural and suburban mail carriers.
The ratified deal features a 6.5 percent wage increase in the first year, followed by three percent in the second year and subsequent increases aligned with the annual inflation rate in the following three years. Additionally, the agreement includes a weekend parcel delivery system and enhanced benefits.
The affirmative vote puts an end to years of contention between Canada Post and the union regarding wages and structural adjustments to the postal service, during which workers resorted to picketing on multiple occasions. Canada Post’s president and CEO, Doug Ettinger, expressed satisfaction with the approval, emphasizing the opportunity to collaborate with employees and bargaining agents to revitalize the business and enhance postal services across the country.
Employees of Canada Post cast their votes between April 20 and May 30, with a mutual agreement not to initiate any strikes or lockouts during the ratification process. A March newsletter revealed that 60 percent of the national executive board recommended ratifying the deal, while Simpson and four other union leaders issued a dissenting opinion, urging workers to reject the agreement due to perceived shortcomings in compensation and worker rights.
Following the ratification vote, Canada Post disclosed a $205 million loss in the first quarter of the year, underscoring the financial challenges the postal service has faced in recent times. To support Canada Post, the federal government allocated $673 million for the current fiscal year, as the Crown corporation strives to modernize through initiatives like community mailboxes, weekend parcel delivery, and potential post office closures.
Minister of Government Transformation, Public Works, and Procurement Joël Lightbound hailed the approval as a significant advancement in the postal service’s restructuring efforts. The restructuring plan involves discontinuing door-to-door delivery for certain addresses and expanding the utilization of community mailboxes. While the union remains opposed to service reductions, it aims to concentrate on assisting communities in safeguarding, enhancing, and expanding postal services now that the ratified worker agreement is in place.