The ongoing labour dispute between Canada Post and the Canadian Union of Postal Workers (CUPW) has escalated after Canada Post rejected the union’s call for binding arbitration, choosing instead to pursue a government-supervised employee vote on its final contract offers.
CUPW, representing postal workers in both urban and rural bargaining units, formally invited Canada Post on Saturday to resolve all outstanding issues through fair, final and binding arbitration. The union said arbitration would provide a swift and impartial resolution to the dispute and end the uncertainty that has plagued postal operations since negotiations began in November 2023.
CUPW President Jan Simpson warned that Canada Post’s request for a government-imposed vote on its final offers “will not bring lasting labour peace,” and could prolong divisions if employees reject the company’s proposals. The union cited previous instances in Canadian labour history where government interventions to restrict the right to strike have been followed by arbitration to settle disputes.
In a statement issued Sunday, Canada Post said it rejected CUPW’s proposal because arbitration 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 contract 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 vote on the final offers is the best path to 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 that 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.
As Canadians await the Minister’s decision on whether a forced vote will proceed, the dispute remains deadlocked, with both sides accusing the other of prolonging the impasse. CUPW insists that arbitration would resolve the dispute fairly and expeditiously, while Canada Post believes a direct vote by employees offers the best hope for a final settlement.