Canada Post and the Canadian Union of Postal Workers (CUPW) have reached a tentative new labour agreement.
The union’s executive is recommending that members accept the deal in a ratification vote set to take place in early 2026.
Canada Post and CUPW have agreed that no strike or lockout action will take place during the ratification process.
Canada Post said the agreement includes a 6.5% wage increase in the first year, followed by a 3% hike in the second year, and increases matching the annual inflation rate in years three through five.
The deal also includes enhanced benefits and a new weekend parcel delivery schedule. The new agreement will run until Jan. 31, 2029.
The new labour pact ends more than two years of strife between Canada Post and CUPW, which represents about 55,000 postal workers across the country.
The two sides have fought over wages and plans to introduce more part-time workers and seven-day-a-week delivery.
Postal workers have gone on strike several times over the last two years, including a disruptive national strike ahead of the year-end holidays in 2024.
Canada Post remains in a precarious financial situation. Its most recent quarterly report in November included a $541 million loss, the largest in its history.
The postal service received a $1 billion federal loan at the beginning of 2025 that was meant to carry it through the end of March 2026. But Canada Post expects that money to soon run out.
