Canada Post's "final" contract offer is being voted on by 53,000 postal workers and is expected to be rejected, according to the Toronto Star.

On May 28, Canada Post offered a “final” contract: a 13% wage hike over four years and a $1,000 signing bonus. Two days later, it asked Jobs Minister Patty Hajdu to order a vote.

Hajdu ordered a mandatory vote on the “final” offer for June 12. It began Monday at 7 a.m. and runs until 5 p.m. August 1, reported Blacklock’s.

Cabinet intervention follows a 32-day strike before last Christmas that cost the Crown corporation $208 million. A similar mail stoppage in 2018 went on for 35 days, costing $110 million. 

Canada Post offers 13% pay hike to workers in bid to avoid strike

A 32-day work stoppage last November caused delays in the delivery of approximately 190,000 passports and 1.65 million tax notices.https://t.co/MJlxgusAJV

— Rebel News (@RebelNewsOnline) May 22, 2025

Canada Post spokesperson Jon Hamilton hopes workers accept the offer, informing the Star that if the vote passes, new collective agreements will be effective until January 31, 2028. Otherwise, Canada Post states uncertainty will persist, reiterating its claimed $10 million daily loss in June.

Minister Hajdu warns a renewed work stoppage would significantly impact millions of Canadians, small businesses, and charities relying on Canada Post, especially in rural areas.

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The Crown corporation did not speculate on next steps; whereas, the union representing workers states a 'No' vote should lead to renewed negotiations.

Layoffs or a lockout are considered probable by labour experts, with only the scale and timing remaining uncertain. 

Memo @PSPC_spac says feds are weary of continued disruptions @CanadaPostCorp as postal workers voted on take-it-or-leave it offer: 'Canada Post needs to adapt to changes.'  https://t.co/21OrC1wOlZ #cdnpoli @CUPW pic.twitter.com/5BjaPuYByQ

— Blacklock's Reporter (@mindingottawa) July 22, 2025

Last week, the CUPW national president urged members to vote 'No' on the government-mandated vote, calling it an assault on collective bargaining.

“A strong NO vote … rejects these bad offers … [and] protects our future and the … bargaining process,” Jan Simpson said yesterday. “It shows Canada Post and this government that postal workers stand united.”

On July 17, she called the government-mandated vote “a deliberate and calculated strategy” to undermine collective agreements. 

A Public Works briefing note states that another postal strike would have a “significant and immediate impact” on millions.

Agitated customers are switching to competitors, causing parcel volume and financial losses to rise. Canada Post has not turned a profit in seven years. The government is closely assessing the corporation's challenges, the note said.

Taxpayers are bailing out another Crown Corporation amid continued financial struggles. Canada Post, whose 55,000 workers went on strike last year, have gone radio silent following the handout.https://t.co/0Ta9SCwVlH

— Rebel News (@RebelNewsOnline) January 26, 2025

On May 15, mediator William Kaplan tabled a report citing a bargaining impasse. He dismissed arbitration for restructuring needs, and proposed a “final” offer to end the dispute. 

Canada Post CEO Doug Ettinger stated in a May 28 Annual Report to Parliament that the Crown corporation faces insolvency due to strong resistance to change. 

Kaplan suggested community mailboxes, eliminating most home delivery, replacing some post offices with franchises, and expanding parcel delivery to seven days a week using part-time and temporary staff.

The union accused Canada Post of avoiding a negotiated settlement by seeking a vote order from Hajdu and insisting on a resolution based on the mediator’s findings.

Canada Post forecasts over a billion in annual losses, even with new federal loans. Management's report to Parliament stated the post office is structurally unsound.https://t.co/1Q9eh7vqyj

— Rebel News (@RebelNewsOnline) June 26, 2025

Management told the Canada Industrial Relations Board (CIRB) its terms were take-it-or-leave-it, stating, “this is as far as the corporation can go.”

"We are out of time,” they claimed. “The financial crisis we face is urgent and worsening, [and] further delays or disruptions will only [exacerbate the situation]. We must act now."

Canada Post reported an $841 million pre-tax loss last year, with overall revenues down 12%. Parcel income dropped 20%, transaction mail 5.3%, and direct marketing 3%.

Canada Post lost $748 million pre-tax in 2023, despite two stamp rate hikes from 92¢ to $1.24 per domestic letter, which generated $102.2 million annually.