Canada Post on Wednesday laid out its "final offers" to the union representing 55,000 workers after negotiations resumed Wednesday morning, as tensions run high over the future of the beleaguered institution.
Included in the proposal are an end to compulsory overtime, a signing bonus of $1,000 for urban employees and $500 for rural and suburban ones, cost-of-living payments that are triggered at a lower inflation threshold.
Management's earlier offer of a nearly 14 per cent cumulative wage hike over four years remains unchanged, as does a plan to hire part-time staff for weekend delivery — a major sticking point in the talks.
Canada Post also aims to launch "dynamic routing" — at 10 processing facilities initially — that could see mail carriers' routes change daily in response to parcel volume.
In a news release, the Crown corporation quoted a federally commissioned report released earlier this month that recommended dynamic routes and part-time weekend positions with similar pay rates, benefits and pension plans to full-time positions.
"Canada Post is facing an existential crisis: It is effectively insolvent, or bankrupt," commissioner William Kaplan wrote.
"The world has changed, and both Canada Post and CUPW (Canadian Union of Postal Workers) must evolve and adapt. Merely tinkering with the status quo is not an option."
The union had been in a strike position starting Friday but opted instead for an overtime ban.
After the month-long strike last fall that was part of these same contract negotiations, Canada Post said ongoing uncertainty has pushed down parcel volumes by 65 per cent from the same time last year.
The organization faces big questions about its business model and its future as letter volumes plunge, with losses topping $4 billion since 2018 and a $1-billion federal loan in January keeping it afloat.
This report by The Canadian Press was first published May 28, 2025.