Offers demonstrate the company’s commitment to reach agreements, with further movement on wage increases and protection of employee benefits and entitlements
Canada Post today presented new global offers to the Canadian Union of Postal Workers (CUPW), demonstrating a commitment to reach agreements and maintain continuity of postal services for Canadians.
The new offers, for the Urban and RSMC (Rural and Suburban Mail Carriers) bargaining units, go further on wage increases and would protect employees’ benefits and entitlements.
The offers also reflect the Corporation’s current realities. Canada Post has proposed important changes to its delivery model to increase its flexibility and help address the Corporation’s significant financial and operational challenges.
Canada Post and CUPW are negotiating at a critical moment for the postal system. Since 2018, the Corporation has recorded more than $3 billion in losses before tax, and it will post another significant loss for 2024.
In early 2025, the Government of Canada announced repayable funding of up to $1.034 billion for Canada Post to prevent insolvency.
Building on the important work of the Industrial Inquiry Commission (IIC) and the findings and recommendations in its final report, the parties must now bring urgency to negotiations.
Another labour disruption would be costly and disruptive for employees, small businesses and the millions of Canadians who rely on the postal system.
Enhancing and protecting what’s most important to employees
Under the new global offers, current employees would keep their:
- Defined benefit pension
- Industry leading job security provisions
- Health benefits and post-retirement benefits
- Vacation (up to seven weeks) and pre-retirement leave
- Cost of living allowance that protects against the effects of unforeseen inflation
- Work schedules
The Corporation has increased its wage offer. Current employees would receive wage increases of 6.0% in year one; 3.0% in year two; 2.0% in year three; and 2.0% in year four (13.59% compounded).
The offers also provide employees with better income replacement for leave under the short-term disability program, and six added personal days locked into the collective agreements.
As part of the company’s commitment to reach agreements, Canada Post has withdrawn items since its last global offer.
The company is no longer proposing a new health benefits plan, changes to employees’ post-retirement benefits, or enrolling future employees in the defined contribution pension.
Changes to secure the future of the postal system
Canada Post is proposing critical changes to its delivery model to help it compete in parcel delivery seven days a week and meet the changing needs of businesses and Canadians.
The company will create stable and predictable part-time jobs for people who are looking for flexible work. The part-time positions will provide health and pension benefits and scheduled and guaranteed hours (15 to 40 hours of work per week).
The creation of part-time jobs increases the company’s delivery flexibility, especially on weekends, while ensuring that letter carriers are not required to work weekend shifts.
Canada Post is also proposing an initial, limited implementation (10 facilities) of Dynamic Routing, an industry standard used by all other major couriers. Under Dynamic Routing, delivery routes are planned and optimized daily, creating more consistent, predictable service for customers.
Future employees, hired after the signing of the new collective agreements, will receive health and pension benefits after six months of regular employment.
Negotiations process and timeline
- November 15, 2024: CUPW started a national strike, shutting down Canada Post’s operations.
- December 13, 2024: The federal Minister of Labour directed the Canada Industrial Relations Board (CIRB) to examine the impasse between Canada Post and CUPW. The Minister also created the IIC to examine the significant issues in the bargaining dispute.
- December 17, 2024: Canada Post and CUPW-represented employees resumed operations after being ordered back to work by the CIRB. The existing collective agreements between Canada Post and CUPW were extended until May 22, 2025.
- May 15, 2025: After holding hearings earlier in the year, the IIC presented its final report and recommendations to the federal government.
- May 19, 2025: Canada Post received strike notices from CUPW, indicating that the union intends to begin strike activity as of May 23, 12:00 am local time.
- May 21, 2025: Canada Post presented new global offers for CUPW-represented employees.
- May 22, 2025: The existing collective agreements expire.
- May 23, 2025: CUPW intends to begin strike activity at 12:00 am local time, unless the parties reach agreements before then.
Offer details
Canada Post employees can read the full offer details at canadapost.ca/offers.
Canada Post’s financial situation is unsustainable. The Corporation has recorded significant annual losses since 2018, fuelled by rapid changes in the postal and parcel delivery sectors and legacy regulatory measures that impede the company’s ability to evolve and compete.
For 2023, the Corporation recorded a loss before tax of $748 million, compared to a loss before tax of $548 million in 2022. From 2018 to 2023, Canada Post lost $3 billion before taxes. Without changes and new operating parameters to address our challenges, we forecast larger and increasingly unsustainable losses in future years.
Canada Post is at a critical juncture in its history. With financial pressures mounting, its long-standing role as a vital, publicly owned national infrastructure for Canadians and Canadian businesses is under significant threat.
Canada Post segment profit (loss) before tax
(in millions of dollars)
Canada Post segment profit and loss before tax in millions of dollars: 194 profit in 2014, 63 profit in 2015, 55 profit in 2016, 76 profit in 2017, 276 loss in 2018, 153 loss in 2019, 779 loss in 2020, 490 loss in 2021, 548 loss in 2022, and 748 loss in 2023.
Deteriorating liquidity and borrowings
The company’s cash has significantly eroded due to ongoing operating losses, large pension and employee benefit contributions, and critical investments to expand capacity and modernize the network. Cash, cash equivalents and marketable securities have depleted by nearly $1.2 billion since 2021.
Without additional borrowing and refinancing, we expect to fall below our required operating and reserve cash requirements by early 2025.
The Corporation has current loans and borrowings of $1 billion, of which $500 million is due for repayment in July 2025. At least $1 billion in new borrowings or other liquidity measures are required for 2025, including refinancing $500 million in existing debt. In the current financial situation, at least $1 billion will also be needed in 2026 and each year afterward to maintain operations and meet our employee obligations.
The Great Mail Decline and cost pressures
For more than a century, letter mail was the main source of revenue for the postal service. In 2006, letter mail volumes hit an historic high when we delivered almost 5.5 billion letters to Canadians. Since then, domestic letter mail volumes for the Transaction Mail line of business have declined by 60 per cent and associated revenue has fallen by nearly 30 per cent. A system built to deliver 5.5 billion letters a year cannot be sustained on two billion letters.
Letter mail volumes have declined from 5.5 billion pieces in 2006 to 2.2 billion today
Letter mail volumes have declined from 5.5 billion pieces in 2006 to 2.2 billion in 2023.
As our mail revenue drops, the cost of delivering mail keeps going up. Population growth means we serve a growing number of addresses each year. In 2006, we delivered to 14.3 million addresses. In 2023, we delivered to 17.4 million addresses.
This issue is not unique to Canada Post. Postal services in advanced economies around the world are experiencing these same challenges as part of the rapid growth of ecommerce and digital transformation for consumers and businesses. The Universal Postal Union estimates revenue from letter-post services globally will decline to about 29 per cent of postal service revenue by 2025, from more than 50 per cent in 2005.
The rise of online shopping has boosted revenue in the Parcels line of business, but it costs significantly more to process and deliver parcels than mail. Parcels require more technology, equipment, scans and customer service support, and take up more space in facilities and vehicles. It also often takes more time to deliver a parcel than a letter (the employee may require a customer signature, for example). With higher costs and lower margins, growth in our Parcels business is not offsetting losses from Transaction Mail.
In 2006, Canadian households received an average of seven letters per week – today it’s two per week
In 2006, Canadian households received an average of 7 letters per week. In 2023, they received an average of 2 letters per week.