Canada Post has presented a revised offer to the union representing 55,000 striking postal workers, eliminating the signing bonus due to the corporation’s financial challenges. The new proposal aims to support the company’s modernization efforts while ensuring the preservation of quality jobs and benefits for employees in the long term.
The offer includes a 13.59% wage increase over four years, health and retirement benefits, and up to seven weeks of vacation, among other provisions from the previous final offer in May. Typically, a signing bonus is granted to unionized employees upon signing a new collective agreement, with Canada Post previously proposing bonuses ranging from $500 to $1,000.
During negotiations that have spanned over a year and a half, Canada Post and the Canadian Union of Postal Workers (CUPW) have been at odds. CUPW expressed disappointment with the latest proposal, describing it as a regression from previous offers. In August, CUPW submitted a counter-offer seeking a 19% wage increase over four years.
The financial challenges facing Canada Post have been significant, with the corporation reporting losses amounting to $841 million in 2024. The Government Transformation Minister highlighted that the daily losses of approximately $10 million could lead to a projected $1.5 billion loss for the year. The minister emphasized the need for fundamental changes to address Canada Post’s financial sustainability.
To address the financial situation, Canada Post has been instructed to implement various changes, including discontinuing home delivery and transitioning remaining addresses to community mailboxes. Other measures involve adjusting mail delivery methods to reduce costs and modernizing operations by lifting restrictions on closing rural post offices.
The plan aligns with recommendations from the Industrial Inquiry Commission and aims to address the decline in mail volumes and adapt to changing postal service needs. In response to the proposed changes, CUPW resumed its national strike, expressing strong opposition.
To facilitate the transformation, Canada Post has offered voluntary buyouts with extended pay periods. Layoffs may be considered as a last resort if attrition and other measures do not achieve reduction targets. The corporation emphasized its commitment to supporting affected employees through the transition process.
