
Canada Post presents ‘final offers' to postal workers union — here's what's included
Canada Post says it has presented 'final offers' to the Canadian Union of Postal Workers (CUPW) in an effort to resolve a long-running labour dispute.
In a news release, Canada Post said its final offers for urban and RSMC (rural and suburban mail carriers) will protect the Crown corporation's 55,000 workers and deliver on recommendations from an Industrial Inquiry Commission (IIC) to modernize its delivery model.
In its latest strike action, CUPW has enforced an overtime ban for all workers, which forbids working more than eight hours in a day or 40 hours per week.
Postal workers joined a 32-day nationwide strike last year before the federal government intervened.
Canada Post said recent strike-related uncertainty has significantly impacted its business. Parcel volumes have dropped by 65 per cent compared to the same time last year, the corporation said in a May 28 update.
In its latest bargaining update, CUPW said its negotiating committees had put forward 'pragmatic and workable concepts' to address major concerns. National president Jan Simpson called the proposals 'a realistic way forward,' but did not disclose further details.
The union also confirmed the national overtime ban remains in effect.
Canada Post has reported losses totalling more than $3 billion since 2018.
Earlier this year, the federal government announced up to $1.034 billion in repayable funding to help prevent the corporation from becoming insolvent.
'After almost two years of negotiations, a lengthy strike, an intensive review by the IIC and now the resumption of strike activity, the corporation's final offers are designed to move negotiations forward and return certainty and stability to Canada Post, its employees and Canadians,' the company said in a news release.
In a separate statement on Wednesday, Canada Post reported a $841-million pre-tax loss for 2024.
Canada Post said its final offer builds on terms outlined in the global offers presented May 21 and includes several added perks.
Among the key items:
Canada Post is maintaining the same wage offer presented in its May 21 global offers.
Current employees have been offered wage increases of six per cent in year one; three per cent in year two; and two per cent in years three and four, for a total compounded wage increase of 13.59 per cent over four years.
By comparison, the union has been seeking a 19 per cent raise over four years.
'The offers also provide employees with better income replacement for leave under the short-term disability program, and six added personal days locked into the collective agreements,' Canada Post added.
Canada Post said it no longer plans to change to its health and post-retirement benefit plans.
It also announced plans to create 'stable and predictable' part-time positions with access to pension and health benefits. These roles would support expanded weekend delivery services without requiring full-time letter carriers to work weekends. Part-time hours would range between 15 and 40 per week.
The company confirmed that dynamic routing — a system that recalculates routes daily to improve efficiency — will roll out initially at 10 facilities.
Canada Post employees and the public can read the final offer details
online
.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Trump's 'big, beautiful' budget bill could cost Canadians billions
A small, obscure section buried in U.S. President Donald Trump's One Big Beautiful Bill Act could cost Canadians and Canadian companies billions of dollars, CBC News has learned. Moreover, it could hand Prime Minister Mark Carney's government yet another political hot potato from south of the border — forcing it to choose between scrapping Canada's digital services tax (DST) or risk the U.S. imposing a new withholding tax on the income Canadians, Canadian companies and pension plans receive from investments in U.S. securities. While it still has steps to go before becoming law, the provision has Canadian experts worried. "This is building a nuclear option into a tax treaty that has lasted for 80 years between Canada and the U.S," said David Macdonald, senior economist with the Canadian Centre for Policy Alternatives. "Just like the U.S. is totally willing to blow up the international trade order, they're totally willing to blow up international tax rules." The concern centres on Section 899 of Trump's One Big Beautiful Bill — more than 1,000 pages of proposed legislation that Trump says will make good on his domestic campaign promises, including tax cuts for Americans. The bill passed the House of Representatives on May 22 by one vote and now has to be approved by the Senate. Section 899, entitled Enforcement of Remedies Against Unfair Foreign Taxes, would increase withholding taxes for non-resident individuals and companies from countries that the U.S. believes have imposed discriminatory or unfair taxes. Experts believe Canada is likely to be one of the countries targeted by the measure because of U.S. government criticism of the DST. The tax applies to all large businesses, foreign and domestic, that earn revenues from certain online business models in Canada. Global minimum tax measures adopted by Canada could also put it in the Trump administration's crosshairs. The timeline for the legislation is in flux and Section 899 could still get dropped from the bill or be amended. If, however, Section 899 becomes law, it could hit Canadians in different ways. For example, the U.S. currently imposes a 15 per cent withholding tax on dividends Canadians receive from U.S. companies. Under tax treaties, however, an equivalent tax credit from the Canadian government generally offsets the withholding tax. If the measure becomes law and the Trump administration designates Canada as a country with discriminatory taxes, a new five per cent withholding tax would go into effect. That tax would increase by five percentage points per year to a maximum of 20 per cent. It is not known if Canada would adjust its tax credits to offset such a tax. Max Reed, a cross-border tax lawyer with Polaris Tax Counsel, said the potential impact could be wide ranging. "It's definitely going to be in the billions, maybe tens of billions," he said. Kim Moody, founder of Moodys Private Client and Moodys Tax, agrees. "Billions, absolutely billions, for sure, would be the impact," he said. "If Canada and the United States allows this to take hold, the result will be chaos. Absolute chaos." Experts say it is not clear exactly how the tax would be applied. For example, would the new withholding tax be imposed on top of existing withholding taxes? Would it also apply to securities held within registered accounts such as RRSPs or only to dividends from shares held directly by Canadians?Finance Minister François-Philippe Champagne's office declined an interview request from CBC News. "Analysis of the implications of the U.S. tax reform bill is ongoing and we await the final version of the bill," wrote spokeswoman Audrey Milette. The U.S. embassy also declined to comment on Section 899 or how it would work. "We are unable to comment at this time as the legislation is still pending final approval," responded an embassy official. U.S. Internal Revenue Service figures show that in 2022, the U.S. withheld $2.9 billion US in tax on $108.5 billion US worth of income from a variety of U.S. sources for Canadian residents and companies. The IRS said $261.4 million US was withheld from individual Canadian residents while $1.22 billion was withheld from companies and $1.24 billion US under the category of Canadian "withholding rate pools (general)." Of the sources of U.S. income received by Canadians, the IRS said $31 billion US was from dividends — half of which went to Canadian corporations. David Pierce, vice-president of government relations for the Canadian Chamber of Commerce, said the chamber began getting worried messages from Canadian businesses once Trump's tax reform bill passed the House of Representatives. "I think the attention and the awareness of it really grew from what was a small subset of companies, now right across the economy — from financial to pensions to, you name it," Pierce said. "They're all very concerned at what this means for average Canadians in your retirement savings and how this would be applied should, of course, it become law." Pierce said the potential cost of Section 899 far outweighs revenue the Canadian government collects from the DST, a tax his group has opposed from the outset. He said the Canadian government should pause the next DST payment scheduled for June 30 and consider getting rid of the tax in negotiations with the U.S. "The concern is that when the U.S. administration makes allegations of Canada's trade practices, they can cite the DST and that's a talking point that rings true not just for Republicans, but also Democrats, in the United States," said Pierce. "That strengthens their hand. It's not strengthening our hand at the bargaining table." Macdonald says the proposed withholding tax would hit hard. "It would have major impacts on Canadian companies, Canadian investors in the U.S — they'd be downright punitive," said Macdonald. "That would probably end up shutting down Canadian businesses in the U.S. and kicking Canadian investors out of the U.S." And the DST isn't the only Canadian tax the U.S. could consider unfair now, or in the future, said Macdonald. "I think this is the tip of the iceberg in terms of threats against Canadian corporate taxation that attempts to level the playing field between American transnationals and Canadian domestic companies that are paying corporate income taxes," he said. Macdonald said the proposed tax could also hit Canadians who don't have direct investments in U.S. securities. "This isn't only for folks with an RRSP," Macdonald said. "I mean, this could extend to the Canada Pension Plan, which is the major means by which people retire in Canada. They could potentially pay dramatically more." The Canada Pension Plan Investment Board declined to comment.
Yahoo
an hour ago
- Yahoo
'WHAT A DISASTER': Liberals blasted over job fair lineup in Hamilton
Resurfaced video from a spring job fair in Hamilton packed with hundreds of people seeking work has social media users laying blame on the federal Liberals. The footage, originally posted on X on April 24 by Harmanjot Panesar, shows what appears to be mostly international students waiting in a huge line for their turn to show that they should be hired over others who believe the same thing. Some online users noted the country's youth unemployment rates while others took shots at the Liberal government's unchanged stance on immigration. 'And yet, while youth unemployment reaches nearly 15%, the Liberals are STILL not getting immigration under control,' Canada Proud wrote on X while resharing the video. X user Ryan Gerritsen agreed, adding, 'What a disaster they've purposely created.' Another commented, 'Not every day you see one longer than the food bank line.' While a third commented, 'Your teenage kids are NOT getting summer jobs.' The most recent numbers from Statistics Canada show that the unemployment rate rose to 6.9% in April, following an increase of 0.1 percentage points the month before. That rate matched the level of November 2024, which was the highest since January 2017 (excluding 2020 and 2021, during the COVID-19 pandemic). The number of unemployed people, either looking for work or who have been temporarily laid off, increased by 39,000 (2.6%) in April and was up by 189,000 (13.9%) on a year-over-year basis, according to StatsCan. Things are dire in Ontario, which has an unemployment rate of 7.8%, second only to Newfoundland. Jobless rate rises as tariffs take 'bite' out of Canada's labour market in April Unemployment reaches non-pandemic high of 6.6%: StatsCan Lineup for CNE jobs shows it continues to be tough for GTA job hunters Two years ago, Ontario had among the lowest unemployment rates at 4.9%, Sun political columnist Brian Lilley previously pointed out. For young people in the province, aged 15-24, the unemployment rate stands at a staggering 15.8%. 'Helping Canadians being employed is clearly not a Liberal priority!!' one person ranted on X. Another asked, 'But they want to bring in 3 million more, this year??'
Yahoo
an hour ago
- Yahoo
Loblaw pulls Folgers coffee from shelves over 'unjustified' cost increases
Shoppers at Loblaw Cos. Ltd.'s stores will soon no longer be able to get a coffee fix by purchasing Folgers-brand products after a pricing dispute prompted the grocer to pull them from its shelves. In an email sent to retailers on Wednesday, Loblaw said it decided to delist all Folgers products after talks with the coffee maker's manufacturer couldn't solve the impasse. "After several weeks of negotiations, we were unable to reach an agreement with the manufacturers of Folgers coffee regarding their significant and unjustified proposed price increases," said the email signed by Loblaw category director Suren Theivakadacham and obtained by The Canadian Press. "We are doing this because we are on the side of customers, and doing what we can to keep prices low ... This decision to delist Folgers coffee reflects our commitment to providing value for customers by not accepting unreasonable cost increases that would hurt Canadians." The email contained an attached list of alternative coffee products the grocer offers as stores prepare to update their shelves. The move comes as coffee prices continue to rise in Canada. Last month, Statistics Canada reported the price of coffee and tea was up 13.4 per cent in April on a year-over-year basis — outpacing both the 3.8 per cent increase in the cost of groceries that month, as well as Canada's overall inflation rate of 1.7 per cent. Experts say higher coffee prices are in part due to recent extreme weather and changes in temperature, which have caused some producers to experience lower yields. Other pressures include a weak Canadian dollar, making it more expensive to import coffee to Canada from other countries, along with the fact coffee is one of the products still subject to Canada's retaliatory tariffs against the U.S. While the U.S. isn't a major producer of coffee, Canadian distributors often purchase it from American brokers. Folgers products are made by the Orrville, Ohio-based J.M. Smucker Co., which raised prices of its coffee offerings both last June and October in response to higher costs it is facing. President and CEO Mark Smucker told analysts on the company's quarterly earnings call in February that more coffee price increases were likely on the way. He said pricing decisions are dictated by costs it faces. "Although we haven't laid out when other pricing is going to happen, we do expect it's going to happen in the next fiscal year, probably in the first half," Smucker said at the time. The company did not respond to a request for comment on Thursday. Loblaw spokeswoman Catherine Thomas said Folgers' proposed cost increases were "unreasonable and unjustified based on underlying costs" and that the grocer felt it was important to push back as many Canadians continue to struggle with unaffordability. "Despite several attempts to address this with the manufacturer, we were not successful," Thomas said in a statement. "We will not accept or pass unjustified cost increases on to customers and therefore we have removed Folgers from our shelves ... We recognize this may create some inconvenience for customers and for that we apologize but again, we will do what is right to help address price increases." Thomas added Loblaw expects most of its stores to be out of stock of Folgers products over the next week or two. This report by The Canadian Press was first published June 5, 2025. Companies in this story: (TSX:L) Sammy Hudes, The Canadian Press