Canada Post and the Canadian Union of Postal Workers say they have reached tentative collective agreements that could bring an end to more than two years of labour tensions at the Crown corporation. The agreements cover both the Urban Postal Operations unit and the Rural and Suburban Mail Carriers unit, representing roughly 55,000 workers nationwide.

The union’s national board has recommended members approve the deals, with ratification votes expected in early 2026. During the ratification process, both sides have agreed there will be no strike or lockout action, providing short-term labour stability as voting takes place.

According to Canada Post, the proposed contracts include a 6.5 per cent wage increase in the first year, followed by a three per cent raise in the second year. In years three through five, wage increases would be tied to the annual inflation rate. The agreements also include enhanced benefits and a new weekend parcel delivery model.

CUPW national president Jan Simpson said the tentative deals reflect worker unity following prolonged negotiations. The union has previously raised concerns about job security and management proposals to expand part-time work and introduce seven-day-a-week delivery. Both contracts would run until January 31, 2029, if ratified.

The agreements come as Canada Post continues to face significant financial challenges. In its most recent quarterly report released in November, the corporation reported a before-tax loss of $541 million, the largest in its history. Canada Post also received a $1 billion federal loan earlier this year, but has warned the funds may be exhausted by the end of this year, earlier than initially projected.