‘There's an agreement to ultimately get to a tentative agreement’
After more than two years of negotiations, Canada Post and the Canadian Union of Postal Workers (CUPW) have reached agreements in principle. However, the development represents an "unusual" approach to labour negotiations, according to one expert.
The agreement means “both sides have agreed on the main points of the deals, but we need to agree on the contractual language that will form the collective agreements that would be put to a vote by the members," says the union.
The current collective agreements will remain in full force and effect, it says: "Upon signing the agreements, the union agrees to pause its strike action, and the employer agrees to suspend its right to lockout. The union will retain the right to strike until new agreements are ratified."
If the tentative agreements are not reached because the parties disagree on how the agreement in principle is reflected in language provisions, says CUPW, "the suspension will be lifted for both parties, and the Union may continue strike activity.”
What makes the deal remarkable is what it lacks: a signed contract, says employment and labour lawyer Sundeep Gokhale.
"What they've done is they've said, 'Conceptually, we've agreed on the big picture issues. But now we're going to put pen to paper, and provided that we have an agreement... we'll ultimately take it to a ratification vote,'" Gokhale explains, according to a CTV News report.
Agreement after financial results
The timing of the announcement raised eyebrows among labour analysts. Canada Post disclosed a quarterly loss exceeding $500 million on Friday and indicated the need for additional federal government bailouts, yet an agreement was reached immediately thereafter.
"All of a sudden, then there's an agreement to ultimately get to a tentative agreement," Gokhale said, according to the report.
Late in September, business organisations across Canada raised urgent concerns as the Canada Post strike took effect, warning that the disruption could have far-reaching economic consequences.
The dispute centred on contentious issues: wage increases and structural workforce modifications, particularly the employer's push to expand part-time employment.
Gokhale noted that Canada Post secured strategic flexibility on rural office closures and community mailbox changes—critical operational priorities for the struggling Crown corporation.
Timeline of Canada Post-CUPW negotiations
November 2023: Collective bargaining between Canada Post and CUPW officially began. The parties would eventually spend more than two years in negotiations over issues including wages, staffing levels, and working conditions.
May 2025: CUPW launched a nationwide overtime ban in late May as an initial labour action, representing the union's decision to escalate its bargaining position. Key bargaining demands included additional medical days beyond the seven personal days in existing agreements.
Mid-September 2025: The union escalated tactics by instructing members to cease delivering unaddressed flyers (neighbourhood mail) across Canada.
Sept. 25-26, 2025: A nationwide strike began after the federal government announced plans to restructure Canada Post, including ending door-to-door delivery and closing rural post offices. This marked a significant escalation in labour action.
Late September/Early October 2025: Negotiations reached a stalemate and the special federal mediator temporarily suspended mediation. CUPW accused Canada Post of using layoffs as intimidation tactics during the second week of the strike.
October 2025: CUPW successfully challenged Canada Post's temporary layoff notices to striking workers through mediation. The parties shifted from full strike action to rotating strikes.
Mid-late October 2025: Government committee hearings into Canada Post's situation began, with the Standing Committee on Government Operations and Estimates examining the labour dispute and structural challenges facing the Crown corporation.
Nov. 9, 2025: Canada Post submitted its restructuring plans to the federal government, outlining proposed operational changes including workforce reductions and service modifications.
Nov. 18, 2025: Canada Post announced unprecedented financial losses of $989 million in the first nine months of 2025, with a quarterly loss of $541 million. CUPW indicated it sought wage increases tied to inflation and operational costs with a five-year plan.
Nov. 21, 2025: After more than two years of negotiations, Canada Post and CUPW announced agreements in principle.
Current status (November 2025): Parties are finalising contractual language for both urban carrier and rural/suburban mail carrier bargaining units. A ratification vote by union members is expected to follow once agreements are signed.
