Canada Post and Union Reach Tentative Agreement to Resolve Strike

Canada Post and Union Reach Tentative Agreement to Resolve Strike

When postal workers stand in solidarity, workers win Canada Post and the CUPW have successfully negotiated a tentative agreement. This is after almost two years of negotiations artificially created to settle the strike that started September 25, 2024. The postal service has signed several good agreements in rapid succession. This all comes as they are dealing with decreasing revenues and a continued battle of enticing employees pay and working conditions.

The strike had started in the first place because of actions taken by the USPS as postal workers fought against low wages and benefits. It eventually shifted to a rolling strike, enabling workers to take action with collective power at various worksites while still providing essential services. When faced with likely public sector strikes in December 2024, the Canadian federal government struck first. The issues were so urgent that they ordered postal workers back to work right before the lucrative holiday season.

Canada Post, like many postal operators, is under serious financial pressure fueled by a declining need for its legacy products. The organization’s other major revenue sources—letter mail and direct-marketing mail—have fallen off a cliff. This fall has been blamed on fresh competition from other courier services and shifts in consumer habits. In turn, Canada Post has faced significant financial losses.

In their attempt to address these challenges, Canada Post tried to implement some highly controversial cuts. They eliminated door-to-door mail delivery for over four million households. They directed them to move non-urgent letter mail by ground rather than air, close rural post offices, and permitted the postal service greater latitude to raise prices. These proposals significantly exacerbated existing tensions between the federal management and CUPW and ultimately led to the recent strike.

Each side has moved significantly in the ongoing negotiations — so much so that CUPW announced that they “have come to an agreement on the essential elements.” As part of the tentative agreement, it was noted that “while this is being done, it has been agreed that all strike or lockout activities are suspended,” according to Canada Post. CUPW is determined to maintain the right to strike. They are going to keep fighting for safe working conditions for all of their members!

Just hours before the beginning of the strike, the federal government approved major changes at Canada Post. This ruling emphasizes the dire need for this type of reform within the department. This backdrop of financial difficulty and operational restructuring has created a challenging environment for negotiations.

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