Federal Jobs Minister Patty Hajdu has called on Canada Post and the Canadian Union of Postal Workers (CUPW) to resume negotiations with federal mediators in an effort to resolve their escalating labour dispute.
In a statement posted today on social media platform X, Hajdu said she has asked both sides to negotiate terms for an arbitration process that could conclude the current round of bargaining and to ensure CUPW tables a response to Canada Post’s latest comprehensive offer.
“Arbitration is not the preferred path to an agreement for either side, and each will have priorities it wants recognized,” Hajdu stated. “For that reason, attempts to negotiate a settlement must continue. Canadians expect the parties to resolve this dispute one way or another.”
“To do that, they must meet and pursue these two paths with urgency,” she added. “Federal mediators are waiting to engage with the parties.”
The ongoing dispute between Canada Post and CUPW has intensified after Canada Post rejected the union’s call for binding arbitration, instead seeking a government-supervised employee vote on its final contract offers.
CUPW, representing both urban and rural postal workers, formally invited Canada Post on Saturday to settle outstanding issues through final and binding arbitration, arguing that this would provide a swift and impartial resolution and end the uncertainty that has surrounded postal operations since talks began in November 2023.
CUPW President Jan Simpson warned that Canada Post’s request for a government-imposed vote “will not bring lasting labour peace,” saying it risks prolonging divisions if employees reject the final offers. The union pointed to past instances in Canadian labour history where government interventions to restrict the right to strike have ultimately been followed by arbitration to settle disputes.
In a statement issued Sunday, Canada Post said it rejected CUPW’s arbitration proposal because it would take too long and add further financial strain to the already struggling Crown corporation. “Arbitration would be long and complicated, likely lasting more than a year,” Canada Post said. “This would further extend the uncertainty experienced over the last 18 months and accelerate the company’s significant financial challenges.”
The postal operator has instead asked the Minister of Jobs and Families to authorize a vote on its final offers under section 108.1 of the Canada Labour Code, which would be administered by the Canada Industrial Relations Board (CIRB). Canada Post argued that letting employees decide directly on the final offers is the best way to secure a negotiated settlement.
The union’s stance remains at odds with the recommendations of the Industrial Inquiry Commission (IIC), which recently concluded that Canada Post is facing an existential financial crisis. The IIC report described the corporation as “effectively insolvent or bankrupt” and said immediate changes are needed to secure its long-term sustainability.
Canada Post’s most recent financial results show a net loss before tax of $841 million in 2024, with the recent labour disruption contributing to a $208-million hit. Parcel volumes have also plummeted by two-thirds compared to this time last year.