Canada Post and the Canadian Union of Postal Workers have reached tentative agreements on labor contracts, another step toward ending a protracted and disruptive negotiations process.
The contracts — one covering urban workers, the other rural and suburban mail carriers — must be ratified by CUPW-represented employees before taking effect. The union will manage the ratification vote, and during that process, both parties have agreed not to engage in any strike or lockout activity, Canada Post said in an emailed news release.
Strikes and other disruptions by Canada Post workers have challenged the carrier's business throughout the past year amid contract negotiations, with shippers diverting volume to other delivery providers to avoid delays. Pay increases and changes to delivery operations were key sticking points during the talks.
"The tentative agreements include higher wage increases, enhanced benefits and a weekend parcel delivery model," Canada Post said in an emailed news release. "Both agreements are for five years and would be in effect until January 31, 2029."
The wage increases include a 6.5% jump in the first year of the contracts and a 3% bump in year two, the government-owned carrier said. The following three years would have wage increases that match the annual inflation rate of the Consumer Price Index.
Canada Post and CUPW signaled that tentative deals were en route last month, after reaching agreements in principle and saying they just needed to iron out contractual language. The only outstanding changes to finalize are related to short-term disability benefits and personal days, a process that will be wrapped up by Jan. 16, CUPW negotiators said in an announcement Monday.
"The ratification vote will only take place once the language has been finalized," the negotiators said.
More information about the proposed changes and the voting process will be provided in the coming days, according to CUPW. Negotiators added that the union's National Executive Board is recommending members vote yes on the tentative deals.
