CUPW warns of deeper conflict as Canada Post rejects arbitration

Canada Post pushes for union vote on final offer, says arbitration would delay resolution by a year

CUPW warns of deeper conflict as Canada Post rejects arbitration

Canada Post has rejected a binding arbitration request from the Canadian Union of Postal Workers (CUPW), despite an 18-month-long contract dispute and ongoing labour tensions.  

According to a Sunday statement reported by CBC News, the Crown corporation said arbitration would be “long and complicated” and could take more than a year. 

Instead, as per Canada Post, it is seeking a “timely and fair resolution” by asking Jobs Minister Patty Hajdu to order a union vote on its final offers, presented last week.  

The corporation said this vote would ensure employees “have a voice,” and described CUPW’s arbitration proposal as counterproductive. 

CUPW, which represents around 55,000 workers, called the refusal another indication that Canada Post is not interested in a “reasonable outcome.”  

In a statement by CUPW’s official release, the union warned, “A forced vote may fail to end the labour conflict and risks further division, prolonging uncertainty for all parties.” 

CUPW has opposed the request for a government-imposed vote, calling it “another unwarranted government intervention.”  

On Saturday, the union reiterated that “only arbitration can end the ongoing labour dispute fairly and expeditiously.” 

The dispute follows Canada Post’s announcement on Wednesday of its “final offers,” which include an end to compulsory overtime, a signing bonus of up to $1,000, and a 14-percent cumulative wage hike over four years.  

But the proposals retain a contentious provision: part-time weekend shifts. 

Canada Post stated on Friday that it could not reach tentative agreements “given the level of impasse and CUPW’s negotiating position.”  

CUPW formally requested arbitration the next day. 

According to CBC News, CUPW officials met with Hajdu and Secretary of State for Labour John Zerucelli on Friday.  

Hajdu later posted on X that her office is reviewing the corporation’s request and that federal mediators remain available to help. 

Source: Patty Hajdu (@PattyHajdu) on X, [May 31, 2025]

CUPW has been in a legal strike position since May 23 but has limited its action to banning overtime work. The union and Canada Post have been engaged in conciliation and mediation for several months. 

As reported by CBC News, last year’s strike lasted a month and ended after then-labour minister Steven MacKinnon referred the matter to the Canada Industrial Relations Board.  

MacKinnon also commissioned an industrial inquiry, which released a report last month recommending structural changes, including phasing out door-to-door letter delivery. 

That same report described Canada Post as “facing an existential crisis: It is effectively insolvent, or bankrupt.” 

According to the corporation’s latest annual report, Canada Post posted a $1.3bn operating loss for 2024, with revenues falling by $800m — or 12.2 percent — compared to 2023.  

Last year’s strike alone caused a “net negative impact of $208m” toward its $841m pre-tax loss.