Canada Post has officially finalized new collective agreements with the Canadian Union of Postal Workers (CUPW). The union, representing 55,000 postal workers, announced on June 1 that its members overwhelmingly approved the deal, putting an end to prolonged negotiations and strikes that had raised uncertainties about the future of the Crown corporation.
A Canada Post spokesperson stated on Thursday that with the newly established agreements, they are eager to collaborate with employees and bargaining agents to revitalize the business, instill trust in the postal service, and enhance national service quality.
The agreement encompasses salary hikes of 6.5% in the first year, 3% in the second year, and adjustments matching the annual inflation rate for years three to five. Additionally, it introduces a weekend parcel delivery system and enhanced benefits.
CUPW reported that approximately 86% of rural and suburban mail carriers and 89% of urban employees voted in favor of the agreement. The terms of the deal are effective until January 31, 2029.
Canada Post emphasized the significance of the agreement as they progress with a “multi-year transformation to achieve financial sustainability and better address the contemporary requirements of the nation.” The corporation’s first-quarter financials indicated a $205 million loss in the initial three months of this year, reflecting ongoing challenges competing against private courier services.
In efforts to reduce costs, Canada Post has implemented measures such as phasing out door-to-door delivery, a move opposed by the union.