Canada Post Workers Reject Contract Offer Amid Ongoing Dispute

URGENT UPDATE: Unionized workers at Canada Post have decisively voted to reject the Crown corporation’s latest contract offer, with over 68.5% of urban mail carriers and 69.4% of rural and suburban workers opposing the deal. This vote, which closed on July 21, 2025, signals a growing rift between employees and management as the postal service grapples with financial instability.

The Canadian Union of Postal Workers (CUPW) announced the results on Friday, emphasizing the need for serious negotiations to address the workers’ concerns. The rejected offer included proposed wage increases of approximately 13% over four years but also aimed to introduce more part-time positions, which the union argues are detrimental to job security.

CUPW’s statement highlighted the urgency for Canada Post to return to the bargaining table, stating, “With these votes behind us, Canada Post must now recognize that the only way forward is to negotiate ratifiable collective agreements that meet postal workers’ needs.” A national overtime ban remains in effect as the union pushes for better terms.

Canada Post has reported alarming financial losses, amounting to $10 million per day as of June 2025, and insists that the rejected proposal reflects the company’s “current realities.” In a statement, the postal service expressed disappointment in the vote’s outcome but thanked employees for their participation.

Federal Minister of Employment and Workforce Development, Patty Hajdu, intervened earlier this year amidst the ongoing labor dispute and asserted that it was crucial for workers’ voices to be amplified. She stated, “Federal mediators have supported parties since August 2024 and will remain available to assist the parties until they reach a deal.” The government is closely monitoring the situation, with hopes for a swift resolution.

The tension between Canada Post and its workers has reached critical levels, as the two parties have been at odds for more than a year and a half. Last holiday season, postal workers went on strike, causing significant delays in mail and parcel deliveries. They returned to work only after the labor minister established a mediation process to assess the potential for an agreement by the end of 2024.

The Canada Industrial Relations Board, led by Commissioner William Kaplan, recently reported that Canada Post is facing severe operational challenges and recommended significant changes, including an end to daily door-to-door mail delivery and an expansion of community mailboxes. These recommendations have added complexity to the negotiations, particularly regarding the proposed integration of part-time workers.

Dan Kelly, president of the Canadian Federation of Independent Business, expressed his disappointment at the voting results, saying, “This just brings more uncertainty at a time when small businesses are already struggling to plan ahead.” He warned that another strike could lead to two-thirds of businesses severing ties with Canada Post.

As the situation develops, all eyes are now on Canada Post and the union to see if they can bridge their differences and secure a fair contract for the 55,000 postal workers represented by CUPW. The stakes are high—not just for employees, but for the future of postal services in Canada.

For those following this urgent labor dispute, stay tuned for updates as negotiations unfold.