The Canadian Union of Postal Workers isn't happy with what Canada Post called its "final offers" for new labor contracts, casting further uncertainty over a drawn-out negotiations process.
The two parties have been in contract discussions amid a union-imposed overtime ban that began upon the May 23 expiration of agreements covering rural and suburban mail carriers and urban postal operations employees. Canada Post said Wednesday its latest offers are more employee-friendly than previous proposals, with compulsory overtime removed, signing bonuses for workers and other perks.
"After almost two years of negotiations, a lengthy strike, an intensive review by the [Industrial Inquiry Commission], and now the resumption of strike activity, the Corporation’s final offers are designed to move negotiations forward and return certainty and stability to Canada Post, its employees and Canadians," the carrier said.
However, Canada Post's offers did not cede ground on two key sticking points. The carrier continues to offer a 13.59% compounded wage increase over four years, short of CUPW's desire for a 19% pay bump. Additionally, Canada Post is still pushing to create part-time jobs that support weekend delivery operations, which the union opposes.
CUPW National President Jan Simpson said Canada Post "is playing hardball" and criticized the offers, arguing they are almost entirely unchanged from previous proposals sent on May 21.
"Canada Post says this was its final offer. But this fight is far from over," Simpson said in a statement.
As contract discussions and the overtime ban continue, Canada Post said Wednesday that shipping activity is plummeting due to uncertainty among its customers. Delivered parcel volumes are down 65% from the same time last year, deepening a decline that stood at 50% just three days prior.
Even prior to the overtime ban, Canada Post was struggling to attract more packages into its network. In 2024, parcel volume declined by nearly 20% year-over-year due to a fourth-quarter strike and competition from alternative carriers, the carrier reported.
