Canada Post and the Canadian Union of Postal Workers have reached tentative agreements for both bargaining units, ending more than two years of labour strife between the Crown corporation and its largest union.

The deals announced Monday cover the Urban Postal Operations and Rural and Suburban Mail Carriers bargaining units, representing about 55,000 workers, according to Canada Post. Both five-year agreements would remain in effect until Jan. 31, 2029.

CUPW’s National Executive Board voted to accept the tentative agreements and is recommending members vote yes during ratification votes scheduled for early 2026, the union said in a bulletin. The parties have agreed not to engage in any strike or lockout activity during the ratification process.

“These outcomes reflect the strength and solidarity of postal workers,” CUPW national president Jan Simpson told BNN Bloomberg. “In the face of extraordinary challenges, we stood together, secured meaningful improvements and pushed back on significant rollbacks.”

Wage increases tied to inflation and expanded benefits

The agreements include a 6.5% wage increase in the first year — including 5% already received — and a 3% increase in the second year, Canada Post said. For years three through five, annual wage increases would match the annual inflation rate of the Consumer Price Index.

Both agreements include enhanced health benefits for employees, improved income replacement for injury-on-duty leave and leave under the short-term disability program, and six non-carry-over personal days locked into the collective agreement, for a total of 13 personal days, according to Canada Post.

The deals also feature a new operating model to support weekend parcel delivery and no changes to employees’ defined benefit pension. The Urban agreement maintains current job security provisions, while the RSMC agreement enhances existing job security provisions. The number of corporate post offices protected in the Urban collective agreement has been adjusted to 393.

CUPW said key achievements since Canada Post’s Oct. 3 offers include higher wages with protection against inflation, improved benefits with no changes to cost-sharing for premiums, retention of Article 53 job security in the Urban collective agreement, and no load levelling or dynamic routing for either bargaining unit.

Outstanding language still under review

The parties have finalized contractual language for all issues apart from changes to the short-term disability program and personal days, which will be finalized by Jan. 16, 2026, according to CUPW. The ratification vote will take place only once the language has been finalized.

The agreements come as Canada Post faces severe financial challenges. According to BNN Bloomberg, Canada Post’s most recent quarterly report in November included a $541-million before-tax loss, the largest in its history. The Crown corporation received a $1-billion federal loan at the beginning of 2025 to carry it through the end of March 2026, but Canada Post now expects the funding to run out by year-end.