Canada Post, letter carriers hammer out details on final contract

Union will now schedule a membership vote on whether to approve the deal

A Canada Post delivery van heads to its next stop in Calgary, Alberta, on April 6, 2025. (Photo: Shutterstock/Habanero Pixel)

Canada Post said Thursday it has finalized language in its tentative contract agreement with mail carriers, setting the table for the Canadian Union of Postal Workers to schedule a ratification vote.

The parties settled on contract terms Dec. 22, but some provisions still required work to get in their final form. 

The five-year contract includes wage increases, enhanced benefits and the initiation of weekend parcel delivery with part-time workers, which Canada Post says is necessary to better compete with private carriers. According to CUPW, the agreement does not include Canada Post demands for dynamic routing and load leveling.  It does include more opportunities for temporary workers to secure regular positions.

Canada Post, which has lost more than $3 billion over seven years, pushed for a flexible business model to compete in an environment of less mail demand and alternative parcel carriers. Dynamic routing would have allowed the corporation to plan and optimize delivery routes based on volumes, delivery addresses and pickup requests. The national post also wanted the ability for supervisors each morning to transfer mail volumes between carriers during scheduled hours to even their workloads rather than having each carrier work the same fixed routes.

Labor talks over more than two years were pockmarked with two general strikes, rotating strikes by area, and work slowdowns. The volatile labor situation caused huge uncertainty for households and businesses. Many e-commerce shippers switched to using private sector delivery companies, adding to the decline in Canada Post parcel volumes and revenues.

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Eric Kulisch

Eric is the Parcel and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He was runner up for News Journalist and Supply Chain Journalist of the Year in the Seahorse Freight Association's 2024 journalism award competition. In December 2022, Eric was voted runner up for Air Cargo Journalist. He won the group's Environmental Journalist of the Year award in 2014 and was the 2013 Supply Chain Journalist of the Year. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com