Canada Post employees have approved a new contract, bringing an end to prolonged conflicts and negotiations between the union and the Crown corporation, which had led to nationwide strikes. The Canadian Union of Postal Workers (CUPW), representing 55,000 postal workers, announced that members overwhelmingly supported the agreement reached in December 2025, with 85.9% voting in favor.
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 challenges, postal workers achieved significant gains, safeguarding job security, pensions, and securing wage increases, improved benefits, and fair pay for all hours worked by rural and suburban mail carriers.
Under the new deal, workers will receive wage hikes of 6.5% in the first year, followed by 3% in the second year, with subsequent increases tied to the annual inflation rate for the following three years. Additional provisions in the agreement include a weekend parcel delivery system and enhanced benefits.
The ratification of the contract marks the conclusion of a period marked by labor disputes and strikes between Canada Post and the union over wage issues and structural changes within the postal service. Canada Post’s president and CEO, Doug Ettinger, expressed optimism following the positive vote, emphasizing a commitment to collaborating with employees and bargaining agents to enhance postal services and bolster confidence in the system.
The ratification process took place after Canada Post reported a $205 million loss in the first quarter of the year. The postal service has faced financial challenges in recent years, grappling with debt and declining demand for traditional mail services. To address these issues, the organization has implemented reforms such as community mailboxes, weekend parcel delivery, and potential post office closures.
Government officials have provided financial support to Canada Post, with the federal government allocating $673 million to sustain the postal service for the current fiscal year. Minister of Government Transformation, Public Works and Procurement Joël Lightbound commended the agreement as a significant advancement in the restructuring efforts of the postal service, emphasizing a shared goal of building a more resilient and efficient postal system to serve all Canadians.
As part of the restructuring plan, certain addresses will lose door-to-door delivery services, while the utilization of community mailboxes will be expanded. Although the union opposes service cuts, it plans to redirect its efforts towards advocating for the protection, enhancement, and expansion of postal services within communities now that the contract for workers has been ratified.