Canada Post presents final offers to the Canadian Union of Postal Workers

Offers act on the recommendations of the Industrial Inquiry Commission while making further enhancements for employees 

OTTAWA, ON, May 28, 2025 /CNW/ - Canada Post today presented final offers to the Canadian Union of Postal Workers (CUPW).

The final offers, for the Urban and RSMC (Rural and Suburban Mail Carriers) bargaining units, protect what's most important to employees while making important enhancements that build on the company's most recent offers. The final offers also act on the recommendations of the Industrial Inquiry Commission (IIC) with much-needed changes to the company's delivery model.

Findings of the IIC

The final offers consider the recommendations of the final report of the IIC, which held hearings earlier this year with participation from both parties. The Commission concluded that "Canada Post is facing an existential crisis: It is effectively insolvent, or bankrupt" (p. 12), and that, "The world has changed, and both Canada Post and CUPW must evolve and adapt. Merely tinkering with the status quo is not an option" (p. 26). 

After almost two years of negotiations, a lengthy strike, an intensive review by the IIC, and now the resumption of strike activity, the Corporation's final offers are designed to move negotiations forward and return certainty and stability to Canada Post, its employees and Canadians.

Uncertainty related to the recent resumption of strike activity has caused the company's business to drop significantly. Delivered parcel volumes are now down 65% from the same time last year, adding significant financial strain to an already challenging financial situation for the Corporation. In early 2025, the Government of Canada announced repayable funding of up to $1.034 billion for Canada Post to prevent insolvency.

Enhanced final offers

Canada Post's final offers are enhanced from its global offers made on May 21: 

• Employees will receive a signing bonus of $1,000 or $500, depending on their role (Urban and RSMC units)
• Cost of living allowance payments would be triggered at a lower inflation threshold (7.16%, instead of 13.59%) (Urban and RSMC units)
• Letter carriers using the Dynamic Routing delivery model will continue to receive a per-piece payment for Neighbourhood Mail deliveries until January 1, 2030. The per piece payments are on top of actual time values (Urban unit)
• Compulsory overtime will be removed, meaning the Corporation can no longer require employees to work mandatory overtime (Urban unit)

Protecting what employees value most

While making enhancements, Canada Post's final offers continue to protect what employees value most:

• Industry leading 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

Advancing the negotiations

The Corporation is maintaining 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.

Canada Post also recently moved on some key sticking points in the negotiations. 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.

Changes to secure the future of the postal system

The company is proposing critical changes to its delivery model to help it compete in parcel delivery seven days a week and meet the changing needs of businesses and Canadians.

The company will create stable and predictable part-time jobs for people who are looking for flexible work. The part-time positions will provide health and pension benefits and scheduled and guaranteed hours (15 to 40 hours of work per week). The creation of part-time jobs increases the company's delivery flexibility, especially on weekends, while ensuring that letter carriers are not required to work weekend shifts.

Canada Post is also proposing an initial, limited implementation (10 facilities) of Dynamic Routing, an industry standard used by all other major couriers. Under Dynamic Routing, delivery routes are planned and optimized daily, creating more consistent, predictable service for customers.

Future employees, hired after the signing of the new collective agreements, will receive health and pension benefits after six months of regular employment.

Offer details

Canada Post employees can read the offer details at canadapost.ca/offers.

About the Industrial Inquiry Commission

The IIC was created to review the key issues in the collective bargaining dispute between Canada Post and CUPW, as well as the company's broader financial situation and competitiveness. The Commission was led by arbitration and mediation expert William Kaplan. Both Canada Post and CUPW participated in hearings in January and February 2025 in Ottawa. Submissions were also received from the public.

SOURCE Canada Post

For more information: Media Relations, 613-734-8888, [email protected]