Canada Post has tabled a new proposal to the Canadian Union of Postal Workers (CUPW), removing a signing bonus it says it can no longer afford as financial losses mount. The offer, which maintains a 13.59 percent wage increase over four years along with health and retirement benefits and up to seven weeks of vacation, follows weeks of strike action by 55,000 postal workers nationwide.
In a statement Friday, the Crown corporation said the updated proposal would support its long-term modernization goals while preserving jobs and benefits. However, it stressed that the company’s deteriorating finances made the previously promised $500–$1,000 signing bonus unsustainable. Canada Post reported an $841 million loss in 2024 and is on pace to lose $1.5 billion this year, with Government Transformation Minister Joël Lightbound warning the company is “effectively insolvent.”
CUPW quickly criticized the new offer, saying the corporation is simply repackaging terms workers already rejected in a previous vote. The union has countered with its own proposal calling for a 19 percent wage hike over four years. Leaders say they will provide a full response after analyzing the revised offer but described the current terms as “worse” than what was on the table earlier.
The government has ordered sweeping reforms at Canada Post to curb losses, including ending home delivery for four million households, shifting non-urgent mail to ground transportation, and lifting a decades-old moratorium on closing thousands of rural post offices. While the minister said remote and Indigenous communities would continue to receive postal service, the changes are expected to reshape the workforce and delivery model over the next decade.
To manage restructuring, Canada Post has offered voluntary buyouts of up to 78 weeks’ pay, with attrition and incentives prioritized before layoffs. The corporation emphasized that affected employees would keep recall rights for two years and retain access to benefits. Still, with negotiations at a standstill and workers back on the picket lines, the path to a deal remains uncertain as both sides brace for a prolonged standoff.
