Canada Post reaches deal with second-largest union, negotiations continue with CUPW

OTTAWA — Canada Post says it has reached a contract deal with its second-largest union as negotiations continue with the Canadian Union of Postal Workers.

The Crown corporation says the new collective agreement with the Canadian Postmasters and Assistants Association comes after 18 months of negotiations, the same span of time it’s been in talks with CUPW.

The postal service says the agreement with the CPAA covers about 8,500 employees, who mostly manage post offices in rural Canada.

It says the new agreement includes an 11 per cent wage increase over three years, retroactive to the start of 2024, including a six per cent increase in the first year, three per cent for 2025 and two per cent in 2026.

In a negotiation update on its website, the CPAA said it made “significant advancements” in many areas of the collective agreement, which also include a bump in leasing allowances, Truth and Reconciliation Day added as a designated holiday and a childcare fund created.

Canada Post is still trying to reach a deal with CUPW, its largest union representing about 55,000 postal workers.

Updates last week from the two sides indicated they were struggling to make progress on talks, while the union remains in a legal strike position with all members under an overtime ban since May 23.

In announcing the deal with the CPAA, Canada Post said the arbitrator between the two said a recent report on the state of Canada’s postal service had an impact on the negotiations.

Canada Post spokeswoman Lisa Liu said last week that CUPW has effectively refused to take heed of the federally commissioned report that called for major reforms to the 158-year-old institution, including more flexible routes and part-time weekend positions with similar pay rates and benefits.

The union said last week that Canada Post is refusing to meet it “halfway” on arbitration, with talks stalled and the two sides still far apart.

Given the impasse, the federal government intervened last week to force unionized Canada Post workers to vote directly on the latest offers from the postal service, though no date has been set.

This report by The Canadian Press was first published June 19, 2025.