Canada Post and the Canadian Union of Postal Workers (CUPW) say they’ve finalized tentative agreements for both the Urban and Rural & Suburban Mail Carrier (RSMC) bargaining units. The agreements would run for five years, through January 31, 2029, if members approve them in a ratification vote expected in early 2026.
For most Ontarians, the immediate takeaway is simple: both sides say there will be no strike or lockout during the ratification process, which reduces the risk of near-term disruption while workers vote.
Key terms at a glance
Here’s what Canada Post has publicly highlighted as the headline terms of the tentative agreements:
- Length: 5 years, expiring January 31, 2029
- Wages: 6.5% in Year 1 (Canada Post says this includes 5% already received), 3.0% in Year 2
- Years 3–5: wage increases that match CPI inflation
- Benefits: an enhanced health benefits plan plus improved income replacement for injury-on-duty leave and the short-term disability program
- Pension: no changes to the defined benefit pension
- Personal days: 6 non-carry-over personal days “locked in,” for 13 personal days total
- Weekend parcels: a new operating model to support weekend parcel delivery
- Job security: maintained for Urban; enhanced for RSMC
- Retail network: number of protected corporate post offices adjusted to 393
- RSMC pay model: moving RSMC employees to an hourly rate of pay
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What’s new today (and what was already known)
What’s new on December 22:
The parties say they’ve finalized the contract language, moving from “agreement in principle” toward a member vote and, if approved, a finalized collective agreement.
What was already known (since November):
Canada Post and CUPW had previously said they reached agreements in principle, with follow-up work focused on writing the legal/contractual wording.
What happens next (ratification, timelines, and risk)
1) Members vote
CUPW says ratification votes are expected in early 2026. Until that vote happens and results are known, the agreements are still “tentative.”
2) No strike/lockout during the vote period
Both the company and the union say there will be no strike or lockout activity during ratification. That matters for anyone mailing time-sensitive documents or relying on deliveries during the holiday period and early January.
3) If members vote “yes”
The tentative agreements become the new collective agreements through to January 31, 2029, creating a multi-year labour runway while Canada Post also tries to stabilize finances and restructure operations.
4) If members vote “no”
If either unit rejects the deal, bargaining resumes and disruption risk could return later. (It doesn’t mean immediate job action the next day, but uncertainty rises fast.)
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Why Ontario students and newcomers should care
Even if you rarely mail letters, a stable postal network still touches a lot of real-life Ontario tasks—especially for students and newcomers who deal with identity documents, school paperwork, and government mail.
Common “life admin” items that can be affected by disruption
- Government correspondence and notices (some programs still use paper mail)
- School transcripts, printed enrolment letters, and some credential documents
- Cards and documents shipped to your address (bank cards, replacement IDs, etc.)
- Parcels (textbooks, winter gear, online purchases, returns)
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What you should do right now (practical checklist)
This is a “reduce stress” checklist while ratification is underway:
If you’re expecting something time-sensitive
- Switch to tracked delivery where possible (tracking helps you prove mailing date and monitor movement).
- Use digital options first (PDF letters, online statements, e-delivery) when an institution offers them.
- Confirm your mailing address on every account that matters (school portal, bank, CRA, ServiceOntario-type accounts where relevant).
- Build buffer time for deadlines: don’t aim for “arrives the day before.” Aim for “arrives a week before.”
- If a school or employer accepts it: submit scanned copies first, then follow up with originals only if required.
If you run a small business (or sell online)
- Diversify carriers for critical shipments (don’t rely on a single network for all orders).
- Update your site’s shipping page with a short line like: “Delivery times may vary during Canada Post labour updates.”
- Plan returns early (returns usually spike after holidays; delays create customer service headaches).
The money and modernization backdrop (why this dispute matters beyond wages)
The labour deal is landing while Canada Post is under heavy financial pressure and public scrutiny.
- Canada Post reported a $541 million loss before tax in Q3 2025 and said losses for the first nine months of 2025 were $989 million before tax.
- The federal government has publicly described Canada Post’s situation as an “existential crisis,” citing multi-year losses and a need for structural change—along with measures like delivery-standard adjustments and broader use of community mailboxes.
- Earlier in 2025, Canada Post disclosed repayable funding intended to help maintain solvency while changes are pursued.
For readers, the key point isn’t the accounting details. It’s that labour stability + operational change are happening at the same time—which often affects service standards, delivery models, and where/when parcels move.
What the “weekend parcel delivery model” could mean (what’s known vs unknown)
Known: Canada Post says the tentative agreements include a new operating model supporting weekend parcel delivery, and this was a major friction point in bargaining.
Unknown: Canada Post hasn’t published the full operating details in the announcement (for example, staffing mix, service standards, or which regions get what first).
What to watch (without guessing):
- Whether weekend delivery becomes consistent in Ontario’s major metros first (common rollout pattern in logistics)
- Whether weekend service changes delivery promises for weekdays (sometimes weekend capacity reduces weekday backlog)
- Whether the new model relies on new roles, revised scheduling rules, or dedicated weekend staffing
Canada Post strike Timeline
- November 2023: CUPW says negotiations began (per media reporting on the dispute).
- November 2025: parties announce agreements in principle (framework stage).
- December 22, 2025: parties say they finalized tentative agreements and contract language.
- Early 2026: CUPW expected to run ratification votes.
- January 31, 2029: stated expiry date if agreements are ratified.
