Postal workers in strike position while negotiations with Canada Post continue

Significant disruptions in mail delivery services have been caused by the ongoing dispute between Canada Post and Canadian Union of Postal Workers (CUPW) while the two parties attempt negotiations for a new contract.

A final offer was presented to CUPW in May, but postal workers rejected this offer and continue to be in strike position.

“We know this ongoing uncertainty is having a significant impact on your business,” the Corporation stated on August 20 in a press release.

“We also know it’s a critical time for your business as the holiday season approaches. To ensure you can make informed business decisions, we will share updates as soon as possible…We are committed to reaching new collective agreements through the bargaining process.”

While negotiations continue, small town delivery services have been affected and local post office workers in Goderich and throughout Huron County remain in strike position.

This long-standing dispute began with a strike on November 15, 2024, when over 55,000 postal workers walked off the job.

According to Matteo Giordano, Vice-President Wingham Local 632, Canada Post had engaged in bad-faith bargaining, changing of work conditions, suspending health benefits, exposing workers to layoffs and refusing to negotiate fair agreements.

On December 17, 2024, after 32 days on the picket lines, the Canadian Industrial Relations Board (CIRB) ordered postal workers back to work and put a pause on the union’s legal strike until May 25, 2025.

Despite 12 months of discussions and negotiating, little progress has been made.

“We did return to the bargaining table before the May 25 deadline and even with the help of federal mediators, we could not come to terms,” explained Giordano.

“When those talks broke down, Canada Post gave us their ‘final’ offer.”

At the May 28 meeting, Canada Post presented final offers to the union.

After nearly two years of negotiations, a lengthy strike, an intense review by the Industrial Inquiry Commission (IIC), and now the resumption of strike activity, the Corporation stated it is hopeful the final offers move negotiations forward and return certainty and stability to customers and Canada Post employees.

According to Canada Post, the final offer includes:

• Employees will receive a signing bonus of $1,000 or $500, depending on their role

• Cost of living allowance payments would be triggered at a lower inflation threshold

• Letter carriers using the Dynamic Routing delivery model will continue to receive a per-piece payment for Neighbourhood Mail deliveries until January 1, 2030. The per piece payments are on top of actual time values

• Compulsory overtime will be removed, meaning the Corporation can no longer require employees to work mandatory overtime

According to a statement by the Corporation, Canada Post has maintained its wage offer.

While making enhancements, according to Canada Post, its final offer continues to protect defined benefit pension, industry leading job security provisions, health benefits, and post-retirement benefits, vacation and other leave.

Despite those protections presented by Canada Post, the company is no longer proposing a new health benefit plan.

Union members believe this as an unfair offer, and in response, Giordano explains that as of May 25, postal workers have been in a legal strike position. On May 26, 2025, CUPW national announced an overtime ban for all postal workers instead of a strike.

Shortly following this, after no movements at the bargaining table, the CIRB stepped in again by granting a one-time direct vote to postal workers on Canada Post’s final offer.

The members rejected this offer with a 70 per cent no vote. Results were announced on August 15.

At this point, CUPW immediately returned to the bargaining table, awaiting Canada Post to return.

Giordano explains that Canada Post’s offer is considered as rollbacks and concessions, including more part-time, low-wage, precarious jobs instead of stable, full-time work.

The offer also included a flexibility plan that undermines job security, pensions, and working conditions, while not addressing health and safety issues, excessive workloads and injuries.

“The union rejected the best and final offer because members overwhelmingly said it did not meet their needs,” explained Giordano.

“Postal workers need living wages, job security, and safe working conditions. Canada Post’s proposal instead pushes a second-class workforce.”

Giordano explains what the union wants – fair wages to keep up with inflation, secure pensions and benefits, health and safety protections, job security and service expansion like postal banking and Internet connection sites in rural post offices.

“Ending this job action is simple,” added Giordano.

“Canada Post must bring forward serious, fair proposals so members can vote on a ratifiable collective agreement at a table without government interference.”

Unfortunately, customers and businesses across Huron County are facing mounting anxiety over further potential disruptions to Canada Post services.

With the CUPW rejecting what has been termed the final offer from Canada Post, local business owners are left uncertain about the reliability of delivery services in the coming weeks and months.

Small businesses in Goderich, Clinton, Wingham, Seaforth and surrounding communities have been dependent on Canada Post for critical operations for a long time.

From shipping goods to receiving invoices and communications, even small-scale interruptions can ripple through planning, cash flow, and customer service.

According to the Huron Chamber of Commerce, the closure of the Goderich Post Office last month, although unrelated to the labour dispute, compounds the anxiety, serving as a reminder of the region’s dependence on the local post office.

For now, businesses face short-term risk, but longer-term, the concern is structural. Will Canada Post emerge from this dispute with the capacity and coverage local businesses can continue to rely on?

Whatever the result when a deal is agreed upon, Giordano and union members remind residents in this area that the union did not create this disruption in services. From the union’s position, it was Canada Post that created this situation.

By informing the public on this issue in a way that promotes uncertainty with its customers, Canada Post has incurred financial losses.

The Canadian Press has revealed the Corporation has reported a loss of $407 million in its second quarter, as parcel volume suffers.

While the strike continues, the company is bleeding millions of dollars in business daily tied to uncertainty around its collective bargaining.

While delivery services remain impacted by the strike, customers are looking elsewhere. Purolator, which is owned in part by the Canada Post Group of Companies, earned a profit before tax of $82 million in the second quarter because of customers seeking delivery services elsewhere.

Despite these reports that Canada Post is struggling financially, yet Giordano says the real squeeze is on the work floor, where employees face constant rollbacks and job insecurity.

“While workers are certainly struggling, especially under an overtime ban, this form of job action is carefully chosen to protect our members while keeping service to the public intact,” added Giordano, adding that the best agreements are reached at the bargaining table.

“Postal workers want to get back to normal as soon as possible, but only with a contract that ensures fairness, safety and stability.”

Reliable shipping is essential for business success, and with labour negotiations resuming, businesses across Huron County are keeping a keen eye on the matter in case of potential disruptions.

Meanwhile, the union vows to continue to make constructive suggestions.

“Our overtime ban is about protecting workers’ health and pushing Canada Post to bargain fairly, not punishing the public,” added Giordano.

“That’s why I am doing informational pickets on my own time, in front of post offices on public property. Canadians deserve to know what’s really happening with their postal service.”

Postal workers have been without a new contract since January 2022, yet services have continued – even through the pandemic – and sometimes at a personal cost to the employees.

Members are dealing with forced overtime, short staffing, and rising injuries.

“That’s why we so deeply value the patience and solidarity of customers and businesses, who understand this fight is about fairness and the long-term health of the public postal service,” Giordano stressed.

While negotiations continue, Canada Post has stated it is currently reviewing the union’s response to its final offer and is committed to reaching new collective agreements through the bargaining process.