Canada Post, unions agree to deal in principle after 2 years of contentious bargaining

Canada Post and the union representing thousands of mail carriers across the country say they have reached an agreement in principle after two years of contentious bargaining.

The Canadian Union of Postal Workers (CUPW) says both sides have “agreed to agreement on the key points of the deal” and as the parties work on language in new contracts, serial strike action has been suspended.

“We need to agree on contractual language that will create collective agreements that will be put to a vote by members,” CUPW said in a statement, noting that it would “retain the right to strike.”

Canada Post confirmed that the parties have reached a tentative agreement, pending a union vote.

“While this is being done, it has been agreed that all strike or lockout activities are suspended,” the agency said.

If the two sides can’t agree on the language of those deals, the strike could resume during the busy holiday season.

The saga took several sharp turns over the years as the union demanded better pay and job security, and Canada Post wanted changes to help its struggling operations.

CUPW launched a nationwide strike in late September after the federal government announced sweeping changes to the Crown corporation, including authorizing it to end home delivery for the four million addresses that still receive it.

The government’s plan also includes lifting the moratorium on closing rural post offices, which covers about 4,000 locations.

The deal comes as Canada Post reports its largest quarterly loss in its history as a labor dispute comes up against long-standing structural issues in the postal service’s business model.