Canada Post reaches a deal with second-largest union. Could there still be a strike?

Canada Post and its second-largest union have reached an agreement in the ongoing labour dispute between the postal service and its workers. In a statement released Thursday , the employer said it has a new collective agreement with the Canadian Postmasters and Assistants Association. As Canada Post’s second-largest union, CPAA represents more than 8,500 employees, primarily those responsible for managing post offices in rural Canada. What are the terms of the new agreement? The new agreement includes an 11 per cent wage increase over three years, retroactive to Jan. 1, 2024. The increase is split between 6 per cent in 2024, 3 per cent in 2025, and 2 per cent in 2026. The agreement is effective from Jan. 1, 2024, to Dec. 31, 2026. According to a release from the union , the agreement also includes a $1,000 lump-sum payment to all full-time employees on the date of its signing, and $500 to all other employees. Does this end the threat of a Canada Post strike? No. Canada Post is still trying to reach a deal with CUPW, its largest union, which represents about 55,000 postal workers. It has been in a strike position since May 23, with the union having imposed a ban on overtime since that date. Last week, the corporation received notice that Patty Hajdu, the minister of jobs and families, had approved its request for a vote to take place on the company’s final offers to CUPW, which was delivered on May 28. The vote will be administered by the Canada Industrial Relations Board as soon as possible. “Canada Post welcomes the Minister’s decision as it will provide employees with the opportunity to have a voice and to vote on a new collective agreement at a critical point in the company’s history,” the company said in a statement . It is still unclear when the vote will take place. What is Canada Post’s final offer? Canada Post’s final offer includes a 13.59 per cent cumulative wage hike over four years and a plan to have part-time workers for weekend delivery. It’s also offering a signing bonus of up to $1,000 and an end to compulsory overtime. “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,” according to Canada Post. Are any other unions involved? A number of Canada Post workers are part of PSAC, the Public Service Alliance of Canada. However, in April that union announced that it would defer bargaining until 2026, after agreeing to a 5 per cent increase retroactive to Sept. 1, 2024, without any concessions on other issues. When was the last Canada Post strike? Mail carriers last went on strike for 32 days beginning Nov. 15, at the height of the pre-holiday shipping season last year. That ended with a back-to-work order and an extension of the current collective agreement to May 22, which brings us to where we are now. — With files from Canadian Press

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