Labour Minister Patty Hajdu expects Canada Post and its largest union to reach an agreement "as soon as possible," reported the Canadian Press. This comes as a business group has suggested Parliament impose back-to-work legislation on the Canadian Union of Postal Workers (CUPW) for the third time in 14 years.

“The government is monitoring this situation closely and expects the parties to reach a resolution as soon as possible,” said Hajdu, noting that Canadians “expect that parties return to the bargaining table and secure an agreement."

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The latest offer included wage hikes of about 13% over four years amid longstanding concerns surrounding its financial viability.

After CUPW leaders rejected the contract, Minister Hajdu earlier invoked the Canada Labour Code, forcing a membership vote, which postal workers rejected by 69%. 

CUPW National President Jan Simpson stated in a newsletter that Minister Hajdu's actions were one-sided, claiming the corporation, aided by the government, waged an unprecedented “propaganda campaign” against them.

“For months now we’ve heard nothing but scare tactics and fear-mongering from Canada Post,” wrote Simpson. “Yet members stood up, stuck together, and they made their votes count.”

Meanwhile, a national overtime ban for members remains in effect.

Canada Post stated its offer balanced company realities with employee priorities and the necessary changes needed to rebuild its parcel business, while evaluating next steps. 

The Crown corporation’s parcel market share fell from 62% in 2019 to 24%, as 73% of small businesses now opt for private couriers.

Canada Post CEO Doug Ettinger reported $841 million in pre-tax losses last year, warning the company is "on the brink" after eight profitless years. He called for major changes, including service cuts and revised union agreements.

A May report by Commissioner William Kaplan declared Canada Post bankrupt, suggesting sustainability through ending door-to-door delivery and expanding community mailboxes.

Without a new business model, the company risks losing $10 million daily and market share, per the business lobby. Federal mediators, involved since August 2024, will continue assisting until a deal is reached.