Tens of thousands of Canadian postal workers have rejected a proposed contract deal with Canada Post, deepening a long-running labour standoff that has already disrupted mail services and raised alarm among small business owners.Roughly 68.5 percent of urban postal workers and 69.4 percent of rural and suburban workers voted against the deal, according to the Canadian Union of Postal Workers (CUPW).
The vote was administered by the Canada Industrial Relations Board (CIRB) after months of failed talks and growing frustration on both sides.The rejected offer included 13 percent wage increases over four years and structural changes aimed at reducing costs, most notably the addition of more part-time workers, which Canada Post argues is necessary to stay solvent. The union, however, has pushed back hard, saying the changes threaten job security and work-life balance.
“It’s time for Canada Post to come back to the bargaining table and start seriously negotiating,” CUPW said in a bulletin to members. “With these votes behind us, Canada Post must now recognize that the only way forward is to negotiate ratifiable collective agreements that meet postal workers’ needs.”Canada Post, a federal Crown corporation, said it was “disappointed in the results” but thanked employees for participating and said it was now “evaluating next steps.”
The dispute comes at a difficult time for the national mail service. Canada Post reported earlier that operating losses of $10 million per day, driven by falling letter volumes and growing competition in the parcel delivery space.A government-commissioned report this spring even described the agency as “essentially bankrupt,” recommending controversial reforms including ending daily door-to-door delivery.The company’s business model, especially its shift toward more flexible, part-time staffing, has been a major sticking point. Workers argue that it undermines the stability of what has long been viewed as a reliable public service.
Federal Labour Minister Patty Hajdu said Friday(August 1) that while the vote result was a setback, it also marked an important milestone in the process. “After 18 months of negotiations, it was important for workers’ voices to be heard,” she said. Federal mediators remain on standby.